Tokyo: Tech pushes Nikkei higher even as US CPI caution prevails

[TOKYO] Japan's Nikkei closed slightly higher on Tuesday (Feb 8), helped by tech stocks as investors snapped up beaten-down equities, even as caution prevailed ahead of US inflation data due out later this week.

The Nikkei share average closed 0.13 per cent higher at 27,284.52, paring most of its early gains of 0.8 per cent. The broader Topix was up 0.42 per cent at 1,934.06.

"Japanese shares rebounded as Nasdaq futures gained (in Asian trading hours), but the upside was capped because investors were cautious ahead of the US CPI (consumer price index) report after strong labour data," said Takatoshi Itoshima, a strategist at Pictet Asset Management.

Technology shares led the gains, with phone company KDDI rising 1.63 per cent, followed by robot maker Fanuc, advancing 1.37 per cent, and chip-making equipment maker Tokyo Electron, adding 0.4 per cent.

Technology startup investor SoftBank Group gave up early gains to fall 0.9 per cent ahead of its earnings announcement due later in the day.

Shionogi & Co fell 1.5 per cent, reversing early gains fuelled by comments from the nation's prime minister that the government would consider granting conditional early approval for the drugmaker's oral Covid-19 treatment.

Trading house Itochu rose 1.83 per cent and was the best performer among the top 30 core Topix names, followed by Sumitomo Mitsui Financial Group, which climbed 1.66 per cent.

Game maker Nintendo lost 1.38 per cent and was the worst performer among the Topix 30, followed by audio equipment and camera maker Sony Group, which fell 1.07 per cent.

The volume of shares traded on the Tokyo Stock Exchange's main board was 1.29 billion, compared to the average of 1.18 billion in the past 30 days. REUTERS