Japan’s Nikkei closes at 2-week high on tech boost


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TOKYO — Japan’s Nikkei index on Tuesday closed at its highest in two weeks, as technology stocks jumped, but the gains were capped by caution ahead of next week’s meeting by the Bank of Japan.

The Nikkei share average ended 0.78% higher at 26,175.56, its highest since Dec. 28. The broader Topix gained 0.27% to 1,880.88.

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The Nasdaq Composite ended well off the day’s highs overnight even as the Dow ended lower and the S&P 500 index closed nearly flat, as expectations that the Federal Reserve would dial back on its hawkish stance were offset by lingering worries about inflation.

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“Treasury yields fell and the Nasdaq gained momentum in the U.S. overnight. So, investors bought Japanese stocks but the gains were limited,” said Shuji Hosoi, senior strategist at Daiwa Securities.

.”.. Investors are cautious about the Bank of Japan’s decision to be made at a policy meeting next week. The bank surprised investors last month, and the (central) bank may do something similar.”

Japan’s central bank last month widened the trading band for the benchmark 10-year government bonds to 0.5% from 0.25%, sending yields across the curve higher.

Eisai closed up 4.84%, after jumping as much as 8% after the U.S. Food and Drug Administration approved its Alzheimer’s drug lecanemab, developed in partnership with Biogen Inc, for patients in the earliest stages of the disease.

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Chip giants Tokyo Electron climbed 3.08% and Advantest gained 1.88%. Air-conditioning maker Daikin Industries rose 5.33%.

Technology investor SoftBank Group climbed 2.36% after a report said British Prime Minister Rishi Sunak has revived talks with the Japanese firm regarding a London listing for chip designer Arm Ltd

Heavyweight Fast Retailing, the owner of the Uniqlo clothing brand, gained 0.98%.

Bucking the trend, utility Tokyo Electric Power Company Holdings lost 4.18% and was the worst performer on the Nikkei. Kansai Electric Power shed 2.79%. Staffing agency Recruit Holdings lost 3.02%. (Reporting by Junko Fujita; Editing by Eileen Soreng and Uttaresh.V)


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