Japan’s Nikkei Stock Edges Higher, Profit-Taking on Chip Shares Caps Rise (UPDATE 1)

Reuters

13:40 JST, December 9, 2024 (updated at 16:15 JST)

TOKYO (Reuters) – Japan’s Nikkei share average rose on Monday, buoyed by Wall Street’s gains at the end of last week, although profit-taking on major semiconductor-related shares limited gains.

After seesawing between gains and losses for much of the day, the Nikkei closed up 0.2% at 39,160.5, while the broader Topix finished 0.3% higher at 2,734.56.

The Nasdaq and the S&P 500 rose to record closing highs on Friday following upbeat company forecasts and as U.S. jobs data fueled expectations the Federal Reserve would cut interest rates this month.

AI-focused startup investor SoftBank Group, up 2%, and Uniqlo parent firm Fast Retailing, adding 1.9%, were among heavyweight Japanese shares to get a lift from Wall Street’s gains.

The solid U.S. economic picture also supported trader sentiment, while data on Monday showed Japan’s economy expanded at a faster pace than initially reported in July-September, thanks to upward revisions in capital investment and exports.

But declines in chip-related shares weighed on the overall index. Chip-testing equipment maker Advantest’s 4.7% drop was the second steepest on the Nikkei, just behind online retailer ZOZO, down 5%.

Tokyo Electron shed 0.8%.

Analysts cited profit-taking after chip shares tracked their U.S. peers higher last week, helping the Nikkei touch its highest intraday level since Nov. 12 at 39,632.3 on Thursday.

Investors are focused on monetary policy meetings for both the Fed and Bank of Japan (BOJ) next week, said Maki Sawada, a strategist at Nomura Securities.

“In the absence of any major market-moving news, we may see a somewhat cautious trend this week,” she said.

The Fed will begin its two-day policy meeting on Dec. 17, while the BOJ will meet on Dec. 18-19.

Among other big-name shares, Sony Group rose 2%, while Konami Group and Recruit Holdings were both up about 1.7%.

Rakuten Group’s 6.7% jump led gainers on continued optimism following the firm’s announcement on Dec. 6 of a shareholder benefits program. (Reporting by Brigid Riley; Editing by Savio D’Souza and Mrigank Dhaniwala)