Japan's Nikkei rallies on Wall Street gains, softer yen
Updates with levels as of 0600 GMT
By Brigid Riley
TOKYO, Sept 12 (Reuters) -Japan's Nikkei share average rose on Thursday after a seven-day slide, as Wall Street's overnight gains and a weaker yen buoyed investor sentiment.
The Nikkei index .N225 closed 3.4% higher at 36,833.27 in broad-based buying. Thebroader Topix .TOPX finished up 2.4% at 2,592.5.
The yen softened after hitting its highest against the dollar this year in the previous session.
"Due to the impact of the (U.S.) consumer price index report, we are seeing the yen trend weaker. This seems to be contributing to positive movements in Japanese stocks," said Hiroshi Namioka, chief strategist at T&D Asset Management.
In a boost to the dollar, Wednesday'sCPI report indicated some stickiness in inflation, crushing bets that the Federal Reserve would cut interest rates by 50 basis points next week.FRX/
Shares of exporters, which tend to benefit from a weaker domestic currency, rebounded.
Among the Tokyo Stock Exchange's 33 industry groupings, transport equipment .ITEQP.T, which includes automakers, climbed 2.4% and was among the top performers. Toyota Motor 7203.T gained 3.8%, whileKawasaki Heavy Industries 7012.T ledthe sector with a 6.3% rise.
Japan's technology shares tracked their U.S. peers higher to offer the Nikkei the largest lift.
All three major U.S. stock indexes closed higher on Wednesday, helped by gains in the technology sector. The Philadelphia SE Semiconductor Index .SOX surged, with AI chipmaker Nvidia NVDA.O adding 8%. .N
Chip-making equipment giant Tokyo Electron 8035.T jumped 4.8%, while Advantest 6857.T, which counts Nvidia among its customers, was up 9.2%.AI-focused startup investor SoftBank Group 9984.T rose about 8%.
Other major shares also rose, with Uniqloparent Fast Retailing 9983.T climbing 3.8%to give the Nikkei the biggest boost.
Shares of Seven & i Holdings 382.T rose more than 4% after Bloomberg News reported that Canada's Alimentation Couche-Tard ATD.TO was discussing how much it could raise the offer price to buy the firm.
Of the Nikkei's 225 constituents, 222 rose, while 3 fell.
Reporting by Brigid Riley; Editing by Subhranshu Sahu and Eileen Soreng
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
