Tokyo: Markets end higher as tech shares gain

TOKYO stocks ended higher Friday (Aug 26), led by rises in tech-related shares while investors awaited a speech by US Federal Reserve Chair Jerome Powell.

The benchmark Nikkei 225 index added 0.57 percent, or 162.37 points, to close at 28,641.38, while the broader Topix index rose 0.15 percent, or 2.99 points, to 1,979.59.

“Traders reacted positively to gains of the US Dow and Nasdaq indexes, and shares related to microchips were snapped up” in Tokyo, Okasan Online Securities said.

Powell will address an annual symposium of global central bankers in Wyoming later on Friday, and is expected to signal that the Fed is not yet ready to end steep rate hikes to quell inflation.

“Expect him to confirm that the task on the inflation fight is not yet done, but any hints for the target level of rates, and sensitivity to risk of overtightening will be closely watched,” Taylor Nugent of National Australia Bank said.

The dollar stood at 136.92 yen, against 136.49 yen overnight in New York.

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Tokyo Electron, which produces tools to build semiconductors, jumped 2.22 percent to 45,870 yen while Advantest, which makes chip-testing kits, rose 1.33 percent to 8,360 yen.

Sony Group gained 1 percent to 11,510 yen after the conglomerate announced a price hike for its PS5 console.

Investment behemoth SoftBank Group jumped 1.18 percent to 5,705 yen, following gains in the tech-rich US Nasdaq index as well as shares in Chinese e-commerce giant Alibaba, which is part-owned by the Japanese company. AFP