TOKYO: Japan’s Nikkei share average rose on Friday as technology stocks tracked the strength in their US peers overnight, although a decline in Uniqlo-parent Fast Retailing limited the gains.
The Nikkei was up 0.51% at 39,642.66 by the midday break and is set to clock an increase of 1.67% for the week.
The broader Topix added 0.62% to 2,764.02 and is on course to post a 2.28% weekly rise.
“The Nasdaq was strong overnight despite the rise in US Treasury yields, which gave confidence to investors,” said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
US stocks gained sharply on Thursday, led by tech-related momentum stocks, as softer-than-expected Producer Prices index data rekindled hopes that inflation remains in a cooling trend, after a strong inflation reading the day earlier.
Treasury yields, however, continued to climb as the hotter-than-anticipated Consumer Price index data raised doubts about the Federal Reserve’s ability to lower rates this year.
Japanese chip-related stocks rose, with Tokyo Electron and Lasertec rising 1.46% and 3.26%, respectively.
Technology investor SoftBank Group gained 0.47%. Property developer Mitsui Fudosan surged 8.24% after plans for shareholder returns, including via a 40 billion yen ($261.22 million) share buyback.
Japan’s Nikkei climbs as chip shares gain, softer yen lifts sentiment
Its peers rose, with Tokyo Tatemono and Mitsubishi Estate jumping 8.44% and 7.94%, respectively.
The property index advanced 5.7%, the most among the Tokyo Stock Exchange’s 33 industry sub-indexes.
“As we approach the corporate earnings season, the market expects shareholder returns from more cash-rich firms.
Mitsui Fudosan raised those expectations,“ said Kamada.
Fast Retailing lost 3.63% after the owner of the Uniqlo brand left its full-year operating profit forecast unchanged.
The stock was the biggest drag on the Nikkei, erasing 175.55 points.
The index gained 200 points in the morning session. Of the index’s 225 components, 162 rose and 60 fell, with three flat.
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