Japan's Nikkei edges higher amid tech rally, pre-data caution
The Nikkei was up 0.12% at 39,507.28 by the midday break. The index rose as much as 0.46% earlier in the session, buoyed by gains in Nasdaq futures during Asia trade.
The U.S. stock futures index advanced after AI chip giant Nvidia said it will resume sales of its H20 graphics processing unit (GPU) chips to China.
The broader Topix edged 0.05% higher to 2,824.15.
'The Nasdaq's gains were a positive cue for the Nikkei, but the gains of the Nikkei were limited as the market awaited U.S. price data and the outcome of the national election,' said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.
Nikkei falls for 3rd day as trade impasse
Global investors also await U.S. consumer price data for June, due later in the day, and will monitor for any upward pressure on prices from tariffs.
In Japan, markets are wary of a potential defeat for the Liberal Democratic Party and its coalition partner Komeito in the upcoming upper house election on July 20.
A potential defeat could empower opposition parties that have pledged in their campaign platforms to cut or abolish the sales tax.
Shares of chip-making equipment maker Tokyo Electron rose 1.72% to become the biggest source for the Nikkei's gains. Cable makers, which are the gauge for the data centre investments, jumped, with Furukawa Electric and Fujikura gaining 4.95% and 3.4%, respectively, to become the top percentage gainers in the Nikkei.
Ryohin Keikaku, operator of the Muji retail brand, fell 4%, becoming the biggest drag on the Nikkei.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
4 hours ago
- Business Recorder
Japan's Nikkei hits record high as automakers rise on weaker yen
TOKYO: Japan's Nikkei share average extended their gains from last week to hit a record high on Monday, tracking the Dow Jones's higher finish last week, as a weaker yen boosted automakers' stocks. The Nikkei rose 0.7% to 43,683.56 as of 0137 GMT. The broader Topix (.TOPX), opens new tab also scaled a record peak, gaining 0.58% to 3,125.6. Japanese shares rallied this month on renewed optimism over the domestic corporate outlook as the impact of U.S. tariffs became clearer. 'Domestic equities kept the momentum from last week. There was an expectation that foreign investors would continue buying Japanese stocks,' said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory. Fast Retailing gained 1.2% to lend the biggest boost to the Nikkei. Automakers rose, with Toyota Motor and Honda Motor rising 1.58% and 1.22%, respectively, as the yen lost 0.2% against the U.S. dollar on Monday. A weaker Japanese currency tends to boost exporters' shares as it increases the value of overseas profits in yen terms when repatriated to Japan. Meanwhile, Japanese shares were also underpinned by the Dow Jones hitting an intraday record high on Friday, as UnitedHealth's shares jumped after Berkshire Hathaway raised its stake. Back in Tokyo, banks fell, sending the banking index 1.45% lower and making it the biggest loser among the Tokyo Stock Exchange's industry sub-indexes. Mitsubishi UFJ Financial Group lost 1.96% and Sumitomo Mitsui Financial Group shed 1.78%. Banks had risen on Friday after a surprisingly strong economic data drove expectations for the Bank of Japan's interest rate hike. Chip-related heavyweights weighed on the Nikkei, with Tokyo Electron and falling 1.3% and 0.09%, respectively.
Business Recorder
2 days ago
- Business Recorder
Nikkei ends at record high as yen weakens
TOKYO: Japan's Nikkei closed at an all-time high on Friday, as the yen weakened and data showed the nation's economy was surprisingly resilient. The Nikkei 225 Index accelerated gains in the afternoon session, surging 1.7% to end at a record peak of 43,378.31. It touched an intraday record high of 43,451.46 earlier in the week. The broader Topix jumped 1.6% to 3,107.68, also a record closing level. The overnight drop in yen provided support to exporters' shares, while data released on Friday showed Japan's economy expanded at an annualised rate of 1% in the April-June quarter, beating forecasts. Analysts expect the full impact of US tariffs on growth to emerge later. Rising US Treasury yields and comments from US Treasury Secretary Scott Bessent on Thursday that the Bank of Japan will likely be raising interest rates were factors behind a jump in financial shares, Nomura Securities strategist Wataru Akiyama said. 'Expectations for improved performance due to rising domestic interest rates are acting as a tailwind, leading to relatively large increases in bank and insurance company shares today,' he said. Banks were the biggest gainers in the Topix, with a sub-index of lenders climbing 4.7% to its highest level since May 2006. Shares of Mitsubishi UFJ Financial Group rose 6%, marking an eighth consecutive session of gains and hitting a record high.
Business Recorder
3 days ago
- Business Recorder
Japan's Nikkei rises as yen weakens, economy shows resilience
TOKYO: Japan's Nikkei advanced on Friday, capping a week in which the benchmark index climbed to a record high, as the yen weakened and data showed the nation's economy was surprisingly resilient. The Nikkei 225 Index gained 0.46%, following its ascent to an all-time high of 43,451.46 earlier in the week. The broader Topix climbed nearly 1%. The overnight drop in yen provided support to exporter shares, while data released on Friday showed Japan's economy expanded at an annualised rate of 1% in the April-June quarter, beating forecasts. Analysts expect the full impact of US tariffs on growth to emerge later. Rising US Treasury yields and comments from US Treasury Secretary Scott Bessent on Thursday that the Bank of Japan will likely be raising interest rates were factors behind a jump in financial shares, said Wataru Akiyama, a strategist at Nomura Securities 'Expectations for improved performance due to rising domestic interest rates are acting as a tailwind, leading to relatively large increases in bank and insurance company shares today,' Akiyama said. Banks were the biggest gainers in the Topix, with a sub-index of lenders climbing 4.1% to the highest level since August 2006. Shares of Mitsubishi UFJ Financial Group rose 5.7%, marking an eighth consecutive session of gains and hitting a record high. There were 151 advancers in the Nikkei index against 66 decliners, positioning the gauge for a 2.6% climb over the week. Reuters
