TOKYO: Japan’s Nikkei share average rose on Monday, buoyed by Wall Street’s gains at the end of last week, although profit-taking on major semiconductor-related shares limited gains.
The Nikkei climbed 0.3% to 39,197.57 by the midday break, while the broader Topix was up 0.4% at 2,738.43.
The Nasdaq and the S&P 500 rose to record closing highs on Friday following upbeat company forecasts and as US jobs data fuelled expectations the Federal Reserve would cut interest rates this month.
The Dow finished lower.
AI-focused startup investor SoftBank Group, up 2.2%, and Uniqlo parent firm Fast Retailing, adding 1%, were among heavyweight Japanese shares to get a lift from Wall Street’s gains.
The solid US economic picture also supported trader sentiment, while data on Monday showed Japan’s economy expanded at a faster pace than initially reported in July-September, thanks to upward revisions in capital investment and exports.
Rakuten Group’s 7% jump led gainers on continued optimism following the firm’s announcement on Dec. 6 of a shareholder benefits program.
But declines in chip-related shares weighed on the overall index.
Chip-testing equipment maker Advantest’s 4.5% drop was the steepest on the Nikkei. Chip-making equipment giant Tokyo Electron shed 0.4%.
Analysts cited profit-taking after chip shares tracked their US peers higher last week, helping the Nikkei touch its highest intraday level since Nov. 12 at 39,632.3 on Thursday.
Japan’s Nikkei rises as tech shares gain
Besides profit-taking, investors are focused on monetary policy meetings for both the Fed and Bank of Japan (BOJ) next week, said Maki Sawada, a strategist at Nomura Securities.
“In the absence of any major market-moving news, we may see a somewhat cautious trend this week,” she said.
The Fed will begin its two-day policy meeting on Dec. 17, while the BOJ will meet on Dec. 18-19.
Among other shares, Sony Group rose 3.3%, Bandai Namco Holdings gained 2.9% and staffing agency Recruit Holdings advanced 2.6%.
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