TOKYO: Japan’s Nikkei share average ended higher on Thursday, tracking overnight strength in Wall Street, as concerns over the impact of US President Donald Trump’s tariff policy eased, although declines in chip-related stocks limited the overall gains.
The Nikkei rose 0.77% to close at 37,704.93, while the broader Topix jumped 1.22% to 2,751,41.
Wall Street’s main indexes finished higher in choppy trading on Wednesday, as investors cheered the likely easing of trade tensions between the US and its major trading partners.
Stocks turned positive following a report that Trump was considering a one-month delay for auto tariffs on Canada and Mexico. Equities extended gains after a White House announcement confirmed that he had agreed to delay tariffs on certain vehicles.
“Market players remain cautious about the US tariff policy, but now they expect Trump would not execute anything that could hurt the global economy,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
Shares of Uniqlo-brand owner Fast Retailing rose 1.17%, providing the biggest boost to the Nikkei on Thursday.
Automakers rose, with Honda Motor and Nissan Motor up 2% and 1%, respectively.
Heavy machinery makers surged after Goldman Sachs raised its rating and target price of Mitsubishi Heavy Industries. Shares of Mitsubishi Heavy jumped 10.79% and peer Kawasaki Heavy Industries surged 7.29%.
Chip-related shares fell and weighed on the Nikkei, with chip-making equipment maker Tokyo Electron and chip-testing equipment maker Advantest losing 1.16% and 0.84%, respectively.
“The market now sees the growth of the global chip industry had peaked after they saw Nvidia’s outlook last month,” Yasuda said.
Makers of cables, a gauge for data centre investments, fell with Fukukawa Electric and Fujikura falling 3.47% and 1.75%, respectively.
Of more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 78% of stocks rose and 19% fell, with 1% trading flat.
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