Tokyo stocks jump as high-tech shares rally

Tokyo stocks jump as high-tech shares rally
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Tokyo: Tokyo stocks leapt on Friday, led by rallies in high-tech shares, after Wall Street gains outweighed concern about geopolitical risk over US plans to open an embassy in Jerusalem next week.

The benchmark Nikkei 225 index rose 1.16 percent, or 261.30 points to close at 22,758.48, marking a weekly gain of 1.27 percent.

The broader Topix index was up 0.98 percent or 17.34 points at 1,794.96. Over the week, it advanced 1.32 percent.

“High-tech stocks led today’s gain after US shares in the sector displayed a strong performance overnight,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

“As the corporate result season is ending soon, investors will start trading shares based on the results of each firm,” Horiuchi told AFP.

In New York, the three major US indices rose, with the Dow closing up 0.8 percent and the tech-heavy Nasdaq ending up 0.9 percent.

Rallies in US stocks led by IT and high-tech shares “reflect the recovery of expectations for growth in profits”, though worries about risks in the Middle East and higher oil prices “could weigh on the market”, said Mutsumi Kagawa, chief global strategist at Rakuten Securities, in a commentary.

“On Monday, the United States will move its embassy to Jerusalem, which will surely prompt reaction from Muslim countries,” he said.

Investors “should consider the impact of higher oil prices on corporate performances but so far the impact on the market is limited”, he added.

The dollar changed hands at 109.44 yen in early Asian trade, against 109.41 yen in New York late Thursday.

In Tokyo, high-tech shares enjoyed a strong session.

Semiconductor equipment manufacturer Tokyo Electron surged 2.47 percent to 21,770 yen as industrial robot maker Fanuc also gained 2.47 percent to 23,600 yen.

Panasonic rallied 4.86 percent to 1,638 yen after it reported its full-year net profit surged 58 percent.

Bridgestone slipped 0.93 percent to 4,469 yen after its first-quarter operating profit was largely in line with market expectations.

SoftBank jumped 2.03 percent to 8,525 yen after a report that its Vision Fund would get backing from a group of new international investors including German carmaker Daimler and Japan’s three major banks.