Japan's Nikkei gains on chip shares boost; Fed policy in focus
Updates with closing levels
By Brigid Riley
TOKYO, June 11 (Reuters) -Japan's Nikkei share average closed at a two-month peak on Tuesday as heavyweight chip shares tracked their Wall Street peers higher, while investors braced for the Federal Reserve'spolicy decision later this week.
Sentiment was up during early Tokyo trading afterthe S&P 500 and Nasdaq both logged record closing highs overnight..N
Japan's chip-related shares in particular performed strongly, following gains on the Philadelphia SE Semiconductor Index .SOX to lift the overall index.
The Nikkei .N225 finished up 0.25% at 39,134.79, its highest closing level since April 15. The indexeased from a three-week intraday high of 39,336.66 touched in early trade as caution took hold.
The broader Topix .TOPX fell 0.2% to 2,776.80.
Investors were positioning carefullyahead of the U.S. CPI report for May, due Wednesday, along with the conclusion of the Fed's two-day policy meeting.
The U.S. central bank iswidely expected to hold interest rates but will release updated economic and policy projections, putting the focus on clues ofhow soon policymakers expect to begin policy easing.
But markets continue to take comfort that the Fed's nextmove will be a cut and not another hike, said Charu Chanana, global market strategist and head of FX strategy at Saxo.
"That is helping U.S. and Japanese stocks, along with sustained AI momentum."
Among individual stocks, chip-related shares Tokyo Electron 8035.T and Advantest 6857.T climbed 2.2% and 1.6%, respectively.
Daiwa Securities Group 8601.T slipped 4.6% to become the biggest percentage loser. The firm announced the purchase of additional Aozora Bank 8304.T shares on Tuesday. Aozora Bank gained 1.1%.
Shares of pharmaceutical firm Eisai 4523.T declined 3.3%, after a vote by outside advisers to the U.S. Food and Drug Administration on Monday cleared the way for a final decision on Eli Lilly's LLY.N experimental Alzheimer's treatment. Eisai has developed its own treatment, Leqembi, with Biogen BIIB.O.
Reporting by Brigid Riley; Editing by Sonia Cheema and Eileen Soreng
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
