Japan’s Nikkei Stock Average Snaps Four-Session Winning Run on Profit-Taking (Update 1)

Reuters

12:50 JST, September 25, 2024 (updated at 16:00 JST)

TOKYO (Reuters) – Japan’s Nikkei share average edged up in choppy trade on Wednesday, buoyed by Wall Street strength overnight, while profit-taking reined in gains as investors awaited fresh drivers.

The Nikkei was up 0.3% at 38,068.22, by the midday break, while the broader Topix gained 0.1% to sit at 2,660.55.

The S&P 500 and Dow ended at record highs on Tuesday, as mining stocks surged following China’s announcement of a sweeping stimulus package, despite initially trimming gains after an unexpected decline in U.S. consumer confidence in September.

The tech-heavy Nasdaq also finished up, with the Philadelphia SE Semiconductor index .SOX surging more than 1% to boost Japanese chip-related shares on Wednesday.

Advantest climbed 4.8% and was the biggest boost to the Nikkei. Tokyo Electron was up 0.4% after gains narrowed as profit-taking kicked in.

But the dollar/yen trading in a narrow range and analysts citing a lack of fresh drivers capped gains for the local stocks.

The market was also ripe for profit-taking after the Nikkei rallied for a fourth straight session to a three-week closing high in the previous session, supported by the Bank of Japan’s dovish slant.

“We’re in a situation where it’s tough to find good material today,” said Kazuo Kamitami, a strategist at Nomura Securities.

However, a strong performance by machinery-related shares after China’s stimulus boost on Tuesday stood out, he added.

Machinery was up 2.5% to lead gains among the Tokyo Stock Exchange’s 33 industry groups.

Daikin Industries rose nearly 6% and was among the top gainers on the Nikkei, just behind electrical equipment maker Yaskawa Electric Corp, up 7.8%, and cosmetic firm Shiseido Co, adding 6.4%.

Toyota Motor rose 1.8%, after the automaker bought back some of its own shares during morning trade.