TOKYO: Japan’s Nikkei share average rose marginally on Friday as chip-related stocks tracked Wall Street higher, while a stronger yen weighed on market sentiment and US tariff worries lingered.

The Nikkei had risen 0.07% to 39,540.37 by the midday break, but was set to lose 1% for the week in what would be its fourth weekly fall in five.

The broader Topix was 0.04% lower at 2,780.86.

Chip-making equipment maker Tokyo Electron rose 3.27% to provide the biggest boost to the Nikkei.

Fujikura , which makes fibres used by data centres, jumped 4%.

“Gains in Japanese equities were limited as the yen strengthened and the market was also concerned about US President Donald Trump’s tariff policy and its impact on Japanese firms,” said Kentaro Hayashi, a senior strategist at Daiwa Securities.

Trump has said Feb. 1 would be the date that he imposes 25% tariffs on imports from Canada and Mexico.

Japan’s Nikkei rises as chip-related shares gain on Advantest’s forecast

The yen was on track for its best monthly start to the year since 2018, helped by the view that the Bank of Japan is likely to keep raising rates this year while its global peers elsewhere look to ease policy.

A stronger Japanese currency tends to hurt shares of exporters, as it decreases the value of overseas profits in yen terms when firms repatriate them to Japan.

“Although the market was not totally pessimistic. Investors became selective and bought stocks with a positive outlook and returns,” Hayashi said.

NEC surged 17% after the computer maker raised its annual operating profit forecast and announced a 5-for-1 stock split.

Conglomerate Hitachi rose 4% ahead of its earnings later in the day.

Among losers, scandal-hit Fuji Media fell 5% after the television network operator slashed its annual net profit forecast by two-thirds citing a sharp drop in advertising revenue.

Truck maker Hino Motors tumbled 10% to become the worst percentage loser on the Nikkei.