Japan’s Nikkei Stock Average Recovers on Chip-related Shares as US Stock Futures Gain (Update 1)

Reuters

12:49 JST, March 14, 2025 (updated at 16:40 JST, Mar. 14)

TOKYO (Reuters) – Japan’s Nikkei share average recouped early losses to end higher on Friday, underpinned by gains in U.S. stock futures, as investors bought chip-related stocks and other undervalued shares.

The Nikkei .N225 rose 0.72% to close at 37,053.1, after falling as much as 0.5% earlier in the session. The index rose 0.45% for the week, snapping three consecutive weeks of losses.

“Investors bought back stocks as they wanted to recover losses in the previous session,” said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory.

On Thursday, the Nikkei gave up its 1.4% intraday gains to end lower.

The broader Topix .TOPX rose 0.65% to 2,715.85.

Chip-testing equipment maker Advantest 6857.T jumped 5.3% and chip-making equipment maker Tokyo Electron 8035.T rose 0.75%. Fujikura 5803.T, a cable maker and a gauge for data center investments, surged 8.05%.

Shares of Canon 7751.T climbed 2.74% after the Japanese camera maker launched plans to buy back up to 2.8% of its shares.

The upside of the Nikkei has been limited as market players are concerned about uncertainties about the U.S. economy, said senior portfolio manager at GCI Asset Management.

“But losses are also limited as there is a demand from institutional investors, such as pension funds, who want to buy stocks to rebalance their portfolios at the end of Japan’s fiscal year,” said Ikeda.

In addition to fears of the impact of President Donald Trump’s tariff threats, his comments about the U.S. recession in a Fox News interview weighed on the sentiment of equity investors, said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management.

“But I think the market could turn its course after April 2 when Trump has vowed to impose reciprocal tariffs on the U.S. trading partners,” Ueno said.

Of the 225 components of the Nikkei, 152 stocks rose and 72 fell, with one trading flat.