Tech shares help Japan’s Nikkei post highest close in more than 2 weeks

TOKYO: Japan’s Nikkei rose on Thursday to its highest close in more than two weeks, driven by technology heavyweights, as US futures advanced and after longer dated US treasury yields tumbled overnight.

The Nikkei share average ended 1.23% higher at 27,553.06, its highest close since April 5. The broader Topix gained 0.67% to 1,928.00. Both indexes rose for the third straight session.

A market participant from a Japanese brokerage said the Nikkei’s gains were capped as investors awaited corporate earnings and currency moves weighed on risk appetite.

The dollar added 0.34% to 128.305 yen, after soaring to a two-decade high of 129.430 on Wednesday as the Bank of Japan stepped in to the bond market for the third time in three months to defend its zero-percent yield target, drawing a stark contrast with the Fed’s increasingly hawkish posture.

Chip-making equipment maker Tokyo Electron rose 3.54% and was the biggest boost to the Nikkei and the Topix, after its global peer ASML Holding NV beat earnings forecasts.

Air conditioner maker Daikin Industries climbed 2.79% and game and camera maker Sony Group gained 1.49%.

Canon fell 2.18% even after a report said the office equipment and camera maker lifted its annual net profit forecast.

Utility Tokyo Electric Power Holdings was the biggest loser on the Nikkei, falling 4.29%.

There were 149 advancers on the Nikkei index against 69 decliners.

The volume of shares traded on the Tokyo Stock Exchange’s main board was 1.08 billion, compared to the average of 1.31 billion in the past 30 days.