TOKYO: Japan’s Nikkei share average rose in a choppy morning session on Wednesday as financial shares outperformed and investors snapped up stocks after the benchmark index’s weak start.
The Nikkei was up 0.13% at 41,635.53 by the midday break, after starting in negative territory as profit-taking prevailed following its record closing high in the previous session. The broader Topix rose 0.09% to 2,898.16.
Big-name stocks picked up to give the Nikkei a lift, with Fast Retailing, the parent company of Uniqlo, and AI-focused startup investor SoftBank Group both gaining around 0.9%.
Technology and semiconductor shares, which saw a selloff in early trading after rallying on Tuesday, narrowed their losses or flipped into positive territory.
“For now, the technicals are highly constructive with investors buying the break-out,” although the risk that global yields will move higher remains amid political uncertainty, said Kyle Rodda, senior financial market analyst at Capital.com.
Higher yields offer investors less risk while also making borrowing to fuel growth more expensive. Japan’s main stock indexes have marched to all-time highs over the last two weeks.
The Nikkei set a fresh record peak of 41,769.35 in the previous session and secured a closing high of 41,580.17.
Among the Tokyo Stock Exchange’s 33 industry sectors, financials led gains, with insurance firms, up 2.7%, at the top of the pack.
Securities and banks were up 1.1% and 0.8%, respectively.
Japan’s Topix hits 34-year peak as banks advance, tech rebounds
The Bank of Japan is meeting with bond market participants on Wednesday for a second day this week, while data showed the country’s wholesale inflation accelerated in June as the yen declined, bringing policy normalisation back into focus.
Among individual shares, Recruit Holdings climbed 2.2% after the staffing agency announced plans to buy back shares.
Kokusai Electric slid 8.6% a day after Reuters reported private equity firm KKR planned to cut its stake in the chip equipment manufacturer.
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