Japan’s Nikkei Stock Average Ends Higher on Tech Gains, Tariff Worries Limit Gains (UPDATE 1)

Reuters

13:13 JST, February 12, 2025 (updated at 16:10 JST)

TOKYO, Feb 12 (Reuters) – Japan’s Nikkei share average closed higher on Wednesday, led by technology stocks, but the gains were capped due to persistent worries about the U.S. tariff policy.

The Nikkei rose 0.42% to close at 38,963.7 after briefly logging marginal losses. The benchmark, however, gained as much as 0.78% earlier in the session.

The broader Topix reversed losses to end flat at 2,733.33.

“Although Japan is not yet a direct target of the tariff policy of the U.S., whenever we hear about anything new about this subject, the market becomes nervous,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

“The auto sector is the most sensitive to the tariff issues.”

The U.S. President on Monday raised tariffs on steel and aluminum imports to 25% from the previous 10%, eliminated country exceptions as well as product-specific exclusions, and promised to announce global reciprocal tariffs within days.

Overnight, the Nasdaq declined, but the Dow Jones Industrial and S&P 500 climbed.

Japan’s stock market was closed on Tuesday for a public holiday.

Among stocks that lifted the benchmark Nikkei, chip-testing equipment maker Advantest jumped 3.41% and technology investor SoftBank Group gained 3.79%.

Medical services platform operator M3 surged 19.27% to an exchange-allowed limit and was the top percentage gainer on the Nikkei.

Cable makers, a gauge for data center investments, rose, with Fujikura soaring 10.35%. Peer Furukawa Electric pared some of its early gains to end 2.95% higher.

The auto sector slipped 0.91%, with Toyota Motor falling 0.91% and Honda Motor shedding 1.34%.

Nissan Motor slumped 5.88%.

Of the 225 Nikkei components, 96 stocks rose and 127 fell, while two traded flat.