Japan’s Nikkei Ends Higher as Chip Shares Track US Tech Stocks, Fast Retailing Weighs (Update 1)

Reuters

13:07 JST, April 12, 2024 (updated at 16:20 JST)

TOKYO, April 12 (Reuters) – Japan’s Nikkei share average ended higher on Friday as chip-related stocks tracked U.S. technology shares overnight, while a decline in Uniqlo-parent Fast Retailing limited gains.

The Nikkei rose 0.21% to close at 39,523.55 and posted a 1.41% weekly gain.

The broader Topix added 0.46% to 2,759.64 and rose 2.11% for the week.

“The Nasdaq was strong overnight despite the rise in U.S. Treasury yields, which gave confidence to investors,” said Shigetoshi Kamada, general manager at Tachibana Securities’ research department.

U.S. stocks closed higher on Thursday, with tech-related momentum stocks leading the charge, as fresh economic data rekindled hopes that inflation remains in a cooling trend after a strong inflation reading the day earlier.

Treasury yields, however, continued to climb as the hotter-than-anticipated consumer price index data raised doubts about the U.S. Federal Reserve’s ability to lower interest rates this year.

Japanese chip-related stocks rose, with Tokyo Electron and Lasertec rising 1.49% and 2.97%, respectively. Advantest gained 0.87%.

Property developer Mitsui Fudosan surged 7.82% to rise the most among the Nikkei components, after it announced plans for shareholder returns, including via a 40 billion yen ($261.22 million) share buyback.

Its peers rose, with Tokyo Tatemono and Mitsubishi Estate jumping 7.61% and 6.92%, respectively.

The property index advanced 5.2%, the most among the Tokyo Stock Exchange’s 33 industry sub-indexes.

“As we approach the corporate earnings season, the market expects shareholder returns from more cash-rich firms. Mitsui Fudosan raised those expectations,” Kamada added.

Fast Retailing fell 4.4%, weighing the most on the Nikkei, after the owner of the Uniqlo brand left its full-year operating profit forecast unchanged.

Of the index’s 225 components, 157 rose and 66 fell, with two flat.

($1 = 153.1300 yen)