Nikkei rebounds on Wall Street tech rally, but posts weekly fall

TOKYO: Technology stocks helped Japanese shares edge higher on Friday, following Wall Street’s overnight rally, although investors taking profits ahead of the weekend capped gains.

The benchmark Nikkei share average closed up 0.17% at 22,920.30, after briefly rising over 1% in early trade.

However, the Nikkei lost 1.58% this week after posting two consecutive weeks of gains.

The broader Topix gained 0.3% to 1,604.06.

All but seven of the 33 sector sub-indexes on the Tokyo exchange traded higher.

On Thursday, Wall Street’s main indexes closed higher as the Nasdaq hit a record high, overshadowing gloom over downbeat US jobless claims data that underlined the Federal Reserve‘s view of a difficult road to recovery.

Some analysts said the overnight moves contributed to investors’ risk appetite.

In Japan, technology-related shares gained as they benefited from a strong performance in their US peers.

Nintendo gained the most among the top 30 core Topix names, climbing 2.63% to hit a 12-year high. Tokyo Electron and Mitsubishi Electric Corp added 0.74% and 0.84%, respectively.

Tense Sino-US relations also weighed on market sentiment.

The Trump administration on Thursday declined to acknowledge any plans to meet with China over the Phase 1 trade deal after the commerce ministry in Beijing said bilateral talks would be held “in the coming days” to evaluate the agreement’s progress.

Elsewhere in the market, Nippon Paint Holdings jumped 6.52% after it said Singapore’s Wuthelam Group will buy out the company for 1.19 trillion yen.

Mobile social company Gree Inc slumped 10.45% after the company announced its net profit dropped 22.3% to 2.71 billion yen ($25.67 million) for the year ended June 30.