Chips boost Japan's Nikkei, but caution ahead of key central bank meetings caps gains
By Brigid Riley
TOKYO, Dec 16 (Reuters) -Japan's Nikkei share average climbed on Monday as chip-related shares were boosted by a rise in their U.S. peers, but investors' positioning ahead of major central bank decisions this week capped gains.
The Nikkei .N225 added 0.2% to 39,533.55 by the midday break, while the broader Topix .TOPX shed 0.04% to 2,745.46.
While U.S. stocks closed the trading week near the unchanged mark in a subdued session on Friday, the Philadelphia SE Semiconductor Index .SOX surged 3.4%. .N
Japan's chip-related shares tracked their peers higher to boost the Nikkei, led by chip-testing equipment maker Advantest's 6857.T 1.9% rise.
Tokyo Electron 8035.T added 0.5% and Socionext 6526.T rallied 9.1% to become the top percentage gainer on the benchmark.
However, moves were restrained as market players awaited what is expected to be another 25-basis-points cut by the U.S. Federal Reserve on Wednesday, followed by the Bank of Japan's (BOJ) monetary policy decision on Thursday.
"There's certainly a strong sense that investors are taking a wait-and-see approach," said Hiroshi Namioka, chief strategist at T&D Asset Management.
Reuters and other media outlets reported that the BOJ is leaning toward keeping rates steady at their meeting this week.
The yen was last hovering around 153.88 per U.S. dollar JPY=EBS, struggling to recover from its worst week since September on the back of those media reports. FRX/
Isuzu Motors 7202.T, up 2%, was among exporter shares to gain on a softer yen, although caution weighed, with Toyota 7203.T rising only 0.1% and Mitsubishi Motor 7211.T sliding 1.1%.
Among other major shares, AI-focused startup investor SoftBank Group 9984.T advanced 0.5% and Chugai Pharmaceutical 4519.T climbed 2%.
Uniqlo brand owner Fast Retailing 9983.T stumbled 0.2%, while entertainment conglomerate Sony Group 6758.T slid 0.8%.
Reporting by Brigid Riley; Editing by Sumana Nandy
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