Tokyo: Nikkei ends at 2-1/2-month high as tech stocks rally

JAPAN’S Nikkei index closed at its highest in 2-and-a-half months, as technology heavyweights tracked Wall Street’s overnight gains and energy shares rose on firmer oil prices.

The Nikkei share average rose 1.04 per cent to close at 28,234.29, its highest close since Mar 29. It also marked a 4-day winning streak. The broader Topix jumped 1.18 per cent to 1,969.98.

“The Nikkei crossed a 200-day moving average — which foreign investors pay attention to — in the previous session and that prompted investors to make further bets today,” said Shuji Hosoi, senior strategist at Daiwa Securities.

US stocks ended higher overnight along with Apple and other technology shares, while Target’s disappointing margin forecast weighed on retail stocks for much of the day.

The Nikkei was led by air-conditioning maker Daikin Industries, which rose 3.63 per cent, and technology investor SoftBank Group’s 2.45 per cent gain. Medical services platform M3 jumped 5.61 per cent and robot maker Fanuc climbed 2.38 per cent.

Oil explorers added 4.7 per cent to be the top gaining sector among the Tokyo Stock Exchange’s 33 industry sub-indexes.

Real estate shares rose 2.82 per cent, with Tokyu Fudosan jumping 4.31 per cent.

Insurers and banks fell 0.91 per cent and 0.85 per cent, respectively, after US Treasury yields fell.

Dai-ichi Life lost 2.16 per cent and was one of the top losers on the Nikkei.

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Mizuho Financial Group was the worst performer among the top core 30 Topix names, falling 1.46 per cent.

Fast Retailing was almost flat in a see-saw trade after the Uniqlo owner said it would raise prices on some goods this fall.

There were 163 advancers on the Nikkei index against 59 decliners.

The volume of shares traded on the Tokyo Stock Exchange’s main board was 1.33 billion, compared to the average of 1.34 billion in the past 30 days. REUTERS