TOKYO: Japan’s Nikkei share average rose on Tuesday, tracking overnight gains on Wall Street, while investors snapped up heavyweight technology stocks amid optimism about the US economic outlook.
The Nikkei had gained 0.24% to 36,113.83 by the midday break.
“Expectations that the US economy would make a soft landing are growing,” said Yugo Tsuboi, a senior strategist at Daiwa Securities.
“Investors bought stocks that are likely to be affected by the global economy.” Chip-related shares rose, with Advantest up 1.41%, Shin-Etsu Chemical gaining 2.28% and Tokyo Electron adding 0.36%.
Chipmaker Renesas Electronics rose 3.08% to become the top percentage gainer on the Nikkei. Air-conditioning maker Daikin Industries climbed 0.86%.
All three major US stock indexes closed higher overnight, with the tech-laden Nasdaq enjoying the largest percentage gain and the S&P 500 notching a record closing high.
“Foreign investors continued to lead buying in Japanese stocks as seen in the gains of the Topix Core 30,” said Takehiko Masuzawa, trading head of Phillip Securities Japan.
The Topix Core 30 rose 0.21%, led by game maker Nintendo, which rose 2.51%. Sony Group climbed 1.11%.
Japan’s Nikkei bounces back on stronger energy stocks, soft yen
The broader Topix inched up 0.06%, with a 0.59% decline in Toyota Motor limiting the gains.
Toyota Motor said on Monday it would suspend shipments of some models including the Hilux truck and Land Cruiser 300 SUV after finding irregularities in certification tests for diesel engines developed by affiliate Toyota Industries. Honda Motor slipped 0.7%.
Isuzu Motors lost 2.48% to become the top percentage loser on the Nikkei.
Tsuruha Holdings lost 6.96% after retail giant Aeon Co said it had entered into exclusive talks with Oasis Management to acquire the shares the Hong Kong-based activist investor holds in the drugstore chain.
Aeon edged up 0.14%.
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