Japan's Nikkei hit near 34-year high on tech gain, weaker yen
Business
The S&P 500 and Dow closed lower overnight, but the technology-heavy Nasdaq edged higher
TOKYO (Reuters/Web Desk) – Japanese shares jumped on Wednesday to their highest level in nearly 34 years, as chip-related shares tracked gains in US technology stocks, while a weaker yen boosted exporters.
By 0432 GMT, the Nikkei index had risen 2.08 per cent to 34,467.76, crossing the 34,000 level for the first time since March 1990.
The broader Topix climbed 1.46pc to 2,448.39, also hitting its highest since March 1990.
"The Nikkei rallied to the 34,000 level and that prompted investors to buy more stocks," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
The S&P 500 and Dow closed lower overnight, but the technology-heavy Nasdaq edged higher.
"The weaker yen was also a tailwind for Japanese stocks. This came after the yen's gain against the dollar weighed on sentiment and limited the Nikkei's gains at the end of last year," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Research Institute.
The dollar rose against the yen overnight as investors awaited US inflation data due on Thursday for clues on the Federal Reserve's interest rate path.
A softer yen tends to help exporter shares as it increases the value of overseas profits in yen terms when firms repatriate them to Japan.
Uniqlo-brand clothing retail chain operator Fast Retailing rose 2.64pc to become the biggest boost for the Nikkei.
Chip-making equipment maker Tokyo Electron gained 2.01pc and ceramics maker Kyocera climbed 5pc.
Drug maker Daiichi Sankyo rose 5pc to become the biggest boost for the Topix. Game maker Nintendo rose 3.87pc and audit equipment and camera maker Sony Group rose 1.99pc.
Medical equipment maker Olympus advanced 5.9pc to become the biggest percentage gainer on the Nikkei.
