TOKYO: Japan’s Nikkei share average reversed course to trade higher on Friday, as investors purchased chip-related stocks and other undervalued shares, although concerns over the US economic outlook limited further gains.
The Nikkei was up 0.35% at 36,919.12 by the midday break, while the broader Topix traded 0.4% higher at 2,709.04.
“The market is concerned about uncertainties about the US economy, and that weighed on stocks in the US and Japan,” said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.
“But losses are also limited as there is a demand from institutional investors, such as pension funds, who want to buy stocks to rebalance their portfolios at the end of Japan’s fiscal year,” said Ikeda.
Chip-testing equipment maker Advantest jumped 4%, providing the biggest boost to the Nikkei, while Toyota Motor climbed 2.1%.
Fujikura, a cable maker and a gauge for data centre investments, jumped 4.5%.
Shares of Canon climbed 3.2% after the Japanese camera maker launched plans to buy back up to 2.8% of its shares.
Japan’s Nikkei tracks US peers higher, climbs nearly 1%
In addition to fears of the impact of US President Donald Trump’s tariff threats, his comments about the US recession at Fox News interview weighed on the sentiment of equity investors, said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management.
“But I think the market could turn its course after April 2 when Trump has vowed to impose reciprocal tariffs on the US trading partners,” Ueno said. Staffing agency Recruit Holdings fell nearly 3% to weigh on the Nikkei the most.
Uniqlo-brand Fast Retailing lost 0.2%. Of all the 225 components on the Nikkei, 139 stocks rose and 82 fell, with four were trading flat.
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