TOKYO: Tokyo stocks closed higher on Thursday, led by tech shares on the back of gains on the Nasdaq after mixed inflation data in the United States.
The benchmark Nikkei 225 index advanced 1.41%, or 461.58 points, to 33,168.10, while the broader Topix index added 1.13%, or 26.93 points, to 2,405.57, according to AFP.
US inflation data released overnight included weak and strong elements resulting in a mixed close in the 3 US major indexes, but a rebound in US high-tech shares boosted investors to buy chip-related shares, Iwai Cosmo Securities said.
The US data showed a pick-up in the consumer price index last month but core inflation, excluding volatile energy and food rates, fell year-on-year (YoY).
The managing partner of SPI Asset Management Stephen Innes said that the still relatively moderate core inflation reading for last month – the third month in a row – combined with the cooling labour market witnessed in the August Employment Report likely seals the agreement for a (US) rate-hike pause.
He added that is a favourable environment for tech stocks that are traditionally sensitive to higher inflation as they required a lot of capital.
The greenback stood at 147.07 yen in Asia, against 147.47 yen in New York.
Tokyo Electron jumps 3.03% to 21,235 yen
Among individual equities, Tokyo Electron, which manufactures tools to build semiconductors, jumped 3.03% to 21,235 yen, while Advantest, a semiconductor test maker, advanced 2.02% to 16,660 yen.
Heavily weighted Fast Retailing, which operates the Uniqlo brand, advanced 2.96% to 35,130 yen.
Sony Group added 1.61% to 12,645 yen, and Panasonic advanced 2.68% to 1,707.5 yen.
But tech investor SoftBank Group gave up early gains and dropped 0.755 to 6,581 yen.
Shortly before the opening bell, the company announced that its subsidiary chip designer Arm was targeting a valuation of more than 52 billion dollars, or 51 dollar per share, for its highly anticipated initial public offering on Nasdaq.
