TOKYO: Japan’s Nikkei share average gained on Monday, buoyed by Wall Street’s Friday rally. The Nikkei added 0.8% to 39,017.32 as of 0209 GMT.
The broader Topix rose 0.7%.
Big tech names supported the Nikkei’s rise, with chip-testing equipment maker Advantest soaring 4% to be the index’s top performer.
Chip-making machinery giant Tokyo Electron firmed 1.6%.
Wall Street’s three main indexes advanced 1% or more on Friday after a benign reading of US inflation saw traders raise bets for interest rate cuts by the Federal Reserve next year.
The Philadelphia SE Semiconductor Index outperformed with a 1.5% jump.
US S&P 500 futures were up 0.3% on Monday.
The auto sub-index was the top performer among the Tokyo Stock Exchange’s 33 industry groups, climbing 1.7%. Toyota was up 2.2%.
Japan’s Nikkei rises as tech shares gain
The carmakers’ rally came despite a rebound in the yen from a five-month low to the US dollar on Friday, although at 156.40 yen per US dollar, the Japanese currency remained more than 1% below where it started the day on Thursday.
A weak local currency increases the value of overseas sales.
Equity sentiment was also supported by the passage of spending legislation in the US Congress on Saturday, averting a destabilizing government shutdown ahead of the busy holiday travel season.
The Nikkei has climbed 2.2% so far in December, putting it on track for a 16.7% rally this year.
The last trading day of the year in Japan will be Dec. 30.
Source: Brecorder
