Japan’s Nikkei rises as tech stocks rally ahead of Warsh speech

TOKYO: Japan’s Nikkei share average rose on Friday, lifted in large part by tech stocks, although gains were capped by simmering concerns about inflation and uncertainty about what Federal Reserve Chair Kevin Warsh might signal in his speech at Jackson Hole. The Nikkei rose 0. 8% to 66, 682. 88 as of the midday recess. Chip-related heavyweights Advantest and Tokyo Electron advanced 2. 1% and 1. 5%, respectively, to be the index’s biggest supports. Security software firm Trend Micro and Fujitsu rallied 5. 5% and 4. 5%, respectively, to be the Nikkei’s biggest percentage gainers. Of the index’s 225 components, 139 rose versus 80 that fell, with six trading flat. The broader Topix added 0. 9% to 4, 152. 88. That put the Nikkei on course for a 1% gain for the week, while the Topix headed for a 2. 1% weekly advance. Japanese tech stocks were supported by gains for Wall Street peers overnight, with the Philadelphia SE semiconductor index rallying 2. 3% on Thursday. However, sentiment was restrained by rising bond yields as oil prices ticked higher amid continued uncertainty in the Middle East. Data on Friday also showed inflationary pressures creeping higher in Tokyo, bolstering the case for a Bank of Japan interest rate hike. Warsh is slated to speak later in the day at the Fed’s annual symposium in Jackson Hole. Three Fed officials have already sounded the alarm about sticky inflation but the new central bank chief has resisted providing forward guidance about where interest rates are going. “There’s a wait-and-see attitude in the Japanese stock market ahead of Warsh’s Jackson Hole speech, with investors wanting to hear what he has to say before making investment decisions, ” keeping trading relatively subdued, said Maki Sawada, a strategist at Nomura Securities.

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