Tokyo: Nikkei climbs to 2-week high on tech sector gains; Subaru down

[TOKYO] Japan's Nikkei share index touched a two-week high on Wednesday as technology stocks edged up after their US peers rallied.

The Nikkei ended up 0.38 per cent at 22,625.73 after brushing 22,662.82, its highest since May 23.

Technology companies Kyocera, Alps Electric and Nikon gained 0.6 per cent, one per cent and 1.59 per cent, respectively, after the Nasdaq closed at a record high for the second day in a row.

But overall market gains were limited as investors remained wary about global trade tensions and geopolitical risks, and as the market awaited the US Federal Reserve's policy meeting next week where it is expected to raise interest rates.

US President Donald Trump and Japanese Prime Minister Shinzo Abe will meet on June 7 and a US-North Korea summit is scheduled on June 12.

"The market's attention is on these events so they will likely refrain from taking large positions now," said Isao Kubo, equity strategist at Nissay Asset Management.

"Investors also want more clues about global economies because while the US economy appears to be solid, other economies may not be."

Financial stocks underperformed as global investors piled back into lower-risk government debt after Italy's new prime minister vowed to enact economic policies that could balloon the nation's already-heavy debt load.

Mitsubishi UFJ Financial Group fell 1.06 per cent while Mizuho Financial Group lost 0.2 per cent.

Subaru Corp declined 1.4 per cent after the automaker said it found new cases of product data fabrication, bringing the total number of affected vehicles to 1,551 from the previously reported 903.

The broader Topix added 0.15 per cent to 1,777.59.

REUTERS