Japan's Nikkei ends higher on tech boost, bank shares drag Topix lower
Japan's Nikkei rose 1.14% driven by tech stocks, while the Topix fell 0.2% due to declining bank shares. SoftBank surged 6.38%, Advantest and Tokyo Electron rose over 4%. U.S. tech gains and expected Fed rate cuts influenced the market. Major banks like Mitsubishi UFJ and Sumitomo Mitsui fell 2% each, impacted by BOJ's rate hike hints. Auto shares declined due to yen concerns.
(Updates with closing prices)
By Junko Fujita
TOKYO, Dec 3 (Reuters) - Japan’s Nikkei share average rose more than 1% on Wednesday, as tech stocks tracked Wall Street’s overnight gains, while the broader Topix index fell as banks lost ground after a sharp rally.
The Nikkei (.N225) rose 1.14% to close at 49,864.68. The Topix (.TOPX) slipped 0.2% to 3,334.32.
“Investors bought stocks that became cheap and sold those which had risen,” said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory.
Chip-related shares jumped, with technology investor SoftBank Group (9984.T) surging 6.38%. Chip-related Advantest (6857.T) and Tokyo Electron (8035.T) rose 5.3% and 4.73%, respectively.
U.S. stocks closed higher on Tuesday, recording their sixth gain in seven sessions, buoyed by advances in technology shares as expectations that the Federal Reserve would cut interest rates next week remained elevated. (.N)
Shares of Japan’s biggest banks fell, with Mitsubishi UFJ Financial Group (8306.T) and Sumitomo Mitsui Financial Group (8316.T) slipping 2% each, while Mizuho Financial Group (8411.T) fell 1.3%.
Bank shares had rallied earlier this week after Bank of Japan’s Governor Kazuo Ueda gave the clearest hint so far on a rate hike, saying that the central bank would consider the “pros and cons” of rising rates at its December 18-19 meeting.
Auto shares also weighed on the Topix as the market was concerned that recent gains in the yen would cut into profits.
Toyota Motor (7203.T) and Honda Motor (7267.T) fell 1.31% and 0.76%, respectively, while Nissan Motor (7201.T) eased 1.89%
Of the more than 1,600 shares trading on the Tokyo Stock Exchange’s prime market, 26% rose, 69% fell and 3% traded flat.
