TOKYO: Japan’s Nikkei share average rose on Tuesday, buoyed by a softer yen and domestic corporate earnings, although semiconductor-related shares logged declines, capping gains on the benchmark.
The Nikkei was up 0.5% at 39,748.13 by the midday break, while the broader Topix rose about 1% to 2,766.36. Investor sentiment was up after Wall Street’s main indexes notched record high closes on Monday as Trump-linked stocks continued to advance.
Meanwhile, a weaker yen offered support for Japan’s export-related shares, with automakers rallying. Toyota Motor and Suzuki Motor added 3.4% and 4%, respectively.
While automakers’ revenue reports this season suffered from factors including a delay in production recovery, recent yen depreciation has the market considering it a “potential tailwind for future performance,” said Nomura Securities strategist Maki Sawada.
The transport equipment sector, which includes Toyota Motor and other automakers, was one of the best performing sectors, up 2.9%.
Financial shares also gained after some positive earnings releases on Monday.
Major banks such as Mizuho Financial Group announce their results later in the week.
The banking sector climbed about 2.2%.
Investors also had their eyes on financial reports from Nikkei heavyweights later on Tuesday, including releases from AI-focused startup investor SoftBank Group and chip-making equipment giant Tokyo Electron after the market closes.
Chip-related shares were the biggest drag on the Nikkei, following a 2.5% decline on the Philadelphia SE Semiconductor index on Monday.
Japan’s Nikkei ends slightly higher
Investors were weighing a Reuters report published over the weekend that the US ordered Taiwan Semiconductor Manufacturing Co to halt shipments of advanced chips to Chinese customers.
Chip-testing equipment maker Advantest fell 2.7%, along with Tokyo Electron, down 1.8%, Lasertec, sliding 3.6%, and Disco Corp, losing 2.1%.
Among other shares, staffing agency Recruit Holdings was last up 5.1% after upwardly revising its profit outlook on Monday.
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