TOKYO: Japan’s Nikkei share average ended higher on Thursday as Tokyo Electron and other chip-related stocks tracked their US peers higher, but gains were capped amid caution ahead of global central bank meetings.

The Nikkei rose 0.55% to close at 38,703.51. The index rose as much as 1.35% to cross the 39,000 level earlier in the session.

“Chip shares lifted the Nikkei, but its gains were capped as investors sold stocks as soon as the index crossed a milestone,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory, referring to the 39,000 level.

Chip-making equipment maker Tokyo Electron jumped 3.46% to provide the biggest boost to the Nikkei. Chip-testing equipment maker Advantest jumped 3.91%.

US chip stocks leapt 4.5% overnight, buoyed by gains to Nvidia and Taiwan Semiconductor Manufacturing.

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