Japan’s Nikkei fades as chip weakness offsets SoftBank, automaker gains – Markets

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TOKYO: Japan’s Nikkei index gave up its first gains in little-changed trade on Thursday, as drag on shippers and chip-related stocks offset a rise in energy stocks and automakers.

The Nikkei share average was roughly flat at 28,238.19 at 0154 GMT, after earlier gains of 0.31% took it to 28,322.28, a level not seen since late March.

The benchmark had rebounded nearly 10% in the four weeks to Wednesday.

The broader Topix edged up 0.04% to 1,970.82.

“From a technical standpoint, the recent Nikkei rally looks heated, and a correction at any time would not be unusual, but right now stocks are benefiting from the support of the sharp decline in the yen,” said Maki Sawada. , Nomura Securities strategist. Of the 225 stocks comprising the Nikkei, 114 rose versus 98 which fell and 13 were flat.

Energy was by far the best performing sector in the Nikkei, rising more than 2% amid rising crude oil prices. Inpex rebounded 2.86%.

Car and motorcycle manufacturers advanced, led by a 3.54% rise for Yamaha and 2.35% for Subaru, as the yen fell to 134.56 to the dollar, extending a two-month low. decades and increasing the value of sales in the United States.

Japan’s Nikkei ends at a 2.5-month high as tech stocks rally

Toyota added 0.47%.

Startup investor SoftBank Group rose 2.26%, after jumping more than 5%, as shares of one of its top investments – Alibaba – rallied on Wednesday along with other Chinese tech names .

However, chip-making equipment makers lagged, following an overnight tumble of 2.39% for the Philadelphia SE Semiconductor Index.

Tokyo Electron slipped 2.93% and Advantest lost 2.73%. Shippers fell, with Kawasaki Kisen being the largest percentage drop in the Nikkei, suffering a 7.49% drop.

Mitsui OSK

Lines fell 6.88% and Nippon Yusen 6.33%.

Electronics maker Sharp fell 7.27% after forecasting a one-third drop in profits.

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