Tokyo stocks end higher on strong chip shares
The 225-issue Nikkei Stock Average ended up 151.51 points, or 0.39 percent, from Tuesday at 38,942.07. The broader Topix index finished 0.89 point, or 0.03 percent, higher at 2,782.24.
On the top-tier Prime Market, gainers were led by electric appliance, chemical and metal product issues.
The U.S. dollar briefly weakened to the upper 144 yen in Tokyo, as the yen was bought after a Bank of Japan policy board member said the central bank may further raise interest rates to counter the risk of elevated prices even if uncertainty over U.S. tariffs remains, dealers said.
On the stock market, the Nikkei index mostly stayed afloat as heavyweight chip-linked shares attracted buying following the rise of a key U.S. semiconductor index overnight on hopes for further growth in the artificial intelligence field.
However, the benchmark entered negative territory at some points as the firmer yen prompted investors to unload some export-oriented shares. A stronger yen reduces overseas profits of exporters when repatriated.
Investors were reluctant to buy shares actively as the market had already digested the news Tuesday that Israel and Iran had agreed to a cease-fire, brokers said.
"Though excessive caution over the Middle East situation receded, it remains as a risk factor as uncertainty persists over how the countries involved will move next," said Maki Sawada, a strategist at the Investment Content Department of Nomura Securities Co.
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