TOKYO: Japan’s Nikkei share average rose nearly 1% on Thursday, as gains of US technology stocks lifted sentiment, prompting investors to scoop up heavyweight chip-related shares.
The Nikkei was up 0.96% at 37,173.82 by the midday break, while the broader Topix rose 0.88% to 2,718.63.
US stocks advanced on Wednesday as cooler-than-expected inflation data helped stanch a sharp selloff, while the escalation of US President Donald Trump’s chaotic, multi-front tariff war kept gains in check.
Technology shares led the gainers among the 11 major sectors in the S&P 500.
Nikkei ekes out gains as US tariffs, growth concerns keep trade
“The market was relieved to see gains of US technology stocks,” said Kentaro Hayashi, senior strategist at Daiwa Securities.
In Japan, chip-testing equipment maker Advantest surged 5.6% on Thursday, providing the largest boost to the Nikkei. Meanwhile, chip-making equipment manufacturer Tokyo Electron saw a 1.59% gain.
SoftBank Group rose 1.41%.
The US inflation data released overnight also relieved investors, Hayashi said.
“The data suggested the US could cut rates if the economy weakens,” he said.
US consumer prices cooled more than analysts expected, reassuring that inflation is headed in the right direction and keeping hopes alive that the US Federal Reserve could cut its key interest rate this year. Automakers fell, with Toyota Motor slipping 0.33% and Honda Motor down 0.07%.
All but three of the Tokyo Stock Exchange’s 33 industry sub-indexes rose.
The auto sector fell 0.11% to become the worst performer. Of the 225 Nikkei companies, 168 stocks rose and 54 fell, with three trading flat.
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