Tokyo: Shares end higher on tech sector strength

[TOKYO] Japanese shares rose on Thursday (Feb 10), with technology stocks tracking overnight strength on the Wall Street, even as caution ahead of the US economic data weighed on investor sentiment.

The Nikkei share average rose 0.42 per cent to close at 27,696.08, after climbing as much as 1 per cent earlier in the session.

The broader Topix gained 0.53 per cent to 1,962,61.

Wall Street jumped overnight to close sharply higher as megacap growth stocks powered up due to a pause in rising interest rates while upbeat earnings reports also encouraged investors to buy.

"The early gains on the Nikkei were cut because investors started selling shares as soon as the market showed a sign of a recovery," said Chihiro Ohta from SMBC Nikko Securities.

"With the long weekend ahead of us and the US consumer data due out soon, there were not much reason for investors to buy." Japanese markets will be closed on Friday for a public holiday.

Investors also took comfort in positive news headlines over recent days suggesting tensions between the West and Russia over Ukraine may be easing.

Shares of chip-related companies led gains on Nikkei, with Tokyo Electron and Advantest rising 1.82 per cent and 2.78 per cent, respectively.

Honda Motor jumped 5.61 per cent after the automaker raised its full-year operating forecast, aided by cost-cutting measures and a weak yen despite a persistent global chip shortage.

Rival Toyota Motor lost 2.74 per cent.

Technology investor SoftBank Group lost 2.3 per cent and was the biggest drag on the Nikkei, followed by health equipment maker Terumo, which fell 4.84 per cent.

Delivery services firm Yamato Holdings tanked 12.07 per cent and was the worst performer on Nikkei. REUTERS