TOKYO: Japan’s Nikkei share average rose to a two-week closing high on Friday, propelled by gains in index heavyweight Fast Retailing, even as investors turned cautious as the earnings season kicked into high gear.
The Nikkei closed 0.6% higher at 39,605.80, logging a 2.5% gain for the week. The broader Topix finished down 0.2% at 2,706.2.
Shares of Fast Retailing jumped 6.1% to become the top percentage gainers, after the owner of clothing brand Uniqlo said on Thursday it had booked record profits for a third straight year.
The rise in Fast Retailing, the heaviest of the Nikkei’s 225 constituents, was enough to keep the Nikkei well in positive territory, even though 160 shares declined.
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Despite a dip in the Philadelphia SE Semiconductor index overnight and Wall Street’s three main indexes, Japan’s chip-related shares closed higher, tracking gains in Nvidia.
Chip-testing equipment maker Advantest, which counts Nvidia among its customers, climbed 3.5%. Chip-making equipment giant Tokyo Electron edged up 0.4%.
The Nikkei struggled to move closer to the 40,000 level, with investors looking forward to a slew of corporate earnings results on Friday and Tuesday, and taking positions carefully ahead of a local holiday on Monday.
“It’s difficult to buy before earnings are released,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
“There’s a sense that investors want to discern company earnings trends” before making a move, he said.
Source: Brecorder
