TOKYO, – Japanese shares rose on Wednesday, led by Sony Group and chip-related stocks, although caution ahead of a key U.S. inflation data later in the day capped further gains.
The Nikkei share average was up 0.34% to 38,491.15 by the midday break, erasing most of its early gains.
Unlock exclusive access to the latest news on India’s general elections, only on the HT App. Download Now! Download Now!
“Gains in the domestic equity market have been capped for several reasons. One is the U.S. inflation data that is out later in the day,” said Makoto Sengoku, senior market equity analyst at Tokai Tokyo Intelligence Laboratory.
“And the markets were wary about cautious corporate outlook. Some companies disappointed investors and they dumped those stocks.”
Sony Group jumped 9% after the tech and entertainment conglomerate pledged to boost shareholder returns and forecast higher annual profit.
Sony was the biggest boost for the broader Topix, which was up 0.18% to 2,735.97.
Chip-making equipment maker Tokyo Electron rose 2.17% to provide the biggest support to the Nikkei.
Chip-testing making equipment maker Advantest advanced 3.12%.
Isetan Mitsukoshi Holdings surged 14% after the department store operator reported gains in its annual sales and profits.
All eyes are now on the U.S. consumer prices report that could dictate the path of Federal Reserve policy. The data is expected to show CPI rose 0.3% month-on-month in April, down from a 0.4% growth the previous month, according to a Reuters poll.
Nitori Holdings tanked 16% to become the biggest loser on the Nikkei, after the house goods shop operator’s annual net profit forecast missed market expectations.
Rakuten Group fell 3.95% after the internet conglomerate logged its 15th consecutive quarter in the red, as losses at its mobile service network unit outweighed a record performance from its financial unit.
Of more than 1,600 stocks listed on the Tokyo Stock Exchange’s prime market, 32% rose and 64% fell, while 2% were flat.
This article was generated from an automated news agency feed without modifications to text.
