TOKYO: Japan’s Nikkei share average hit a three-week high on Thursday, tracking overnight Wall Street advances, with heavyweight Fast Retailing and technology stocks leading the gains.
Nikkei index was up 0.63% at 38,190.85 by the midday break, after rising to 38,408.19, its highest level since Aug. 1.
“Heavyweight technology stocks rose but the yen weakened a little bit after the market opened in Japan, which lifted stocks that would have fallen in the current foreign currency market condition,” said Kentaro Hayashi, senior strategist at Daiwa Securities.
Overnight the yen strengthened to below the psychological 145 barrier against the US dollar but it lost momentum, and was last trading around 145.47.
US stocks advanced on Wednesday after investors parsed a steep downward revision in payrolls, and the release of the minutes from the Federal Reserve’s most recent meeting, which cemented expectations for a September interest rate cut.
Japan’s Nikkei tracks Wall Street rally amid softer yen
Uniqlo-brand owner Fast Retailing rose 1.34% to boost the Nikkei the most. Chip-testing equipment maker Advantest jumped 2.14%.
The broader Topix edged up 0.08% to 2,666.92. A smaller gain in the Topix compared with the Nikkei suggested that the market was led by gains in heavyweight technology stocks, said Hayashi.
Toyota Motor fell 1.75% and was the biggest drag on the Topix index, but its peer Honda Motor inched up 0.1% and Mazda Motor rose 0.2%.
Japan Tobacco (JT) rose 1.56%, after the tobacco and drink maker agreed to acquire US-based Vector Group in a deal worth around $2.4 billion.
The drug sector rose 1.78% to become the top performer among the Tokyo Stock Exchange’s 33 industry sub-indexes.
The brokerage sector fell 1.59% and was the worst performer.
The banking sector fell 1.04%.
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