Japan's Nikkei rises as tech shares track Nasdaq gains

By Junko Fujita TOKYO, Dec 17 (Reuters) - Japan’s Nikkei share average edged higher, rebounding from a two-week low hit in the previous session, as technology stocks tracked overnight gains on the Nasdaq. The Nikkei (.N225) was up 0.3% at 49,505.41, as of 0210 GMT, after briefly falling as much as 0.6% earlier in the session. If the advance holds, the index is set to snap a two-session losing streak. The broader Topix (.TOPX) added 0.05% to 3,372.24. The broader Topix (.TOPX) edged 0.05% higher to 3,372.24. Chip-testing equipment maker Advantest (6857.T) rose 1.59%, providing the biggest boost to the Nikkei. Uniqlo owner Fast Retailing (9983.T) gained 0.87%, while robot maker Fanuc (6954.T) jumped 2.68%. U.S. markets offered mixed cues overnight, with the Nasdaq closing higher, while the S&P 500 and Dow Jones Industrial Average ended lower, weighed down by losses in healthcare and energy stocks. (.N) “It is hard to make active bets before the Bank of Japan’s policy decision this week. The market has fully priced the interest rate hike at the BOJ’s policy meeting, but investors want to know the pace of the rate hike next year,” said Shota Sando, equity market analyst at Tokai Tokyo Research Institute. The BOJ is widely expected to raise interest rates by 25 basis points to 0.75% on Friday, a three-decade high, and signal further tightening, closing the year with two hikes despite headwinds from U.S. tariffs and the inauguration of a dovish prime minister. The Nikkei is likely to trade without a clear direction toward the year-end, fluctuating between small gains and losses as investors take profits after strong advances in technology shares, Sando said. However, he added that demand from individual investors looking to buy on dips should provide support. Among other stocks, SoftBank Group (9984.T) slipped 0.88%, while fibre optic cable maker Fujikura (5803.T) erased early losses to trade 0.52% higher. On the Tokyo Stock Exchange’s prime market, 44% of stocks rose, 50% fell, and 4% were unchanged.