Japan's Nikkei rises to record closing high on tech boost

[TOKYO] Japan’s Nikkei share average rose for a third consecutive session and hit a record closing high on Wednesday (Apr 22), supported by heavily weighted tech stocks, though uncertainty over US-Iran peace talks tempered sentiment.

The Nikkei closed up 0.4 per cent at 59,585.86 in a choppy session after falling as much as 0.6 per cent. The broader Topix slipped 0.7 per cent to 3,744.99.

Tech investment conglomerate SoftBank Group rose 8.5 per cent and chip-testing equipment maker Advantest advancing 2.6 per cent. They contributed about 353 and 169 points to the Nikkei index, respectively.

“AI and a very small number of stocks that have recently been driving the market are the only areas in positive territory, while declines stand out across the broader market,” said Kazunori Tatebe, chief strategist at Daiwa Asset Management.

On Wednesday, JP Morgan raised its year-end target for the Nikkei to 70,000 from 61,000, citing a boom in AI and a weaker yen. It also hiked its year-end target for Topix to 4,300 from 4,100.

US President Donald Trump said on Tuesday he would indefinitely extend the ceasefire with Iran, hours before it was set to expire, to allow the two countries to continue peace talks to end the conflict. It was not immediately clear whether Teheran or US ally Israel would agree to the extension.

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There were 41 advancers on the Nikkei index against 182 decliners.

Meanwhile, Sapporo Holdings shed 5.2 per cent to become the Nikkei’s biggest percentage loser, after the Japanese brewer said it would exit the craft beer business in the US and sell Stone Brewing just four years after acquiring it.

Camera and precision optics manufacturer Nikon Corp lost 4.4 per cent while tire maker Yokohama Rubber declined 3.8 per cent. REUTERS