Japan’s Nikkei Stock Average Rises on Boost from Chip-Sector Stocks (UPDATE 1) 

Yomiuri Shimbun file photo
The Tokyo Stock Exchange

TOKYO, Dec 9 (Reuters) – Japan’s Nikkei share average rose on Tuesday, shaking off early weakness as chip-sector stock gains buoyed the overall index.

Three of the five biggest advancers in index-point terms were semiconductor-related companies, led by chip-making tool maker Tokyo Electron 8035.T, as they tracked an overnight rally for U.S. peers.

The Nikkei .N225 added 0.1% to end the day at 50,655.10. The broader Topix .TOPX finished flat at 3,384.92.

Japanese stocks started the day on the back foot amid investor caution in the lead-up to the U.S. Federal Reserve’s policy decision on Wednesday. An interest rate cut is widely expected, but the central bank’s subsequent monetary policy path is clouded by stark divisions within the board.

“Focus has, almost solely, now pivoted to the commentary and guidance that will accompany the announcement of a 25-basis-point Fed funds rate cut,” Michael Brown, a strategist at Pepperstone, wrote in a client note.

“Anticipation ahead of the ‘main event’ of the week will likely lead to conviction being capped throughout today.”

Japanese investors shrugged off Monday’s powerful offshore earthquake, which ultimately did minor damage and did not trigger a massive tsunami, despite initial warnings.

Of the Nikkei’s 225 components, 116 rose compared with 109 that fell.

Chip-making tool manufacturers Disco 6146.T and Tokyo Electron 8035.T climbed 4.7% and 1.3%, respectively. Chip-testing equipment maker Lasertec 6920.T advanced 3.6%.