Japan's Nikkei ends marginally higher, profit-booking pares gains
18/10/2024 07:57
(Updates as of 0600 GMT)
TOKYO, Oct 18 (Reuters) - Japan's Nikkei share average
ended higher on Friday, tracking the Dow's overnight gains, but
pared a large chunk of its early gains as investors booked
profits.
The Nikkei .N225 added 0.18% to close at 38,981.75, after
rising as much as 0.7% earlier in the session. The index ended
the week 1.75% lower.
The broader Topix .TOPX ended 0.04% higher at 2,688.98,
but posted a 0.68% weekly loss.
The Dow Jones Industrial Average on Thursday advanced to its
fourth record close in the last five sessions, as
stronger-than-expected monthly retail sales indicated a robust
U.S. consumer and TSMC's upbeat forecast buoyed chipmakers'
stocks. .N
"As the Nikkei got closer to the 40,000 level, investors
sold stocks to book profits," said Fumio Matsumoto, chief
strategist at Okasan Securities.
"That was because the market did not justify its recovery to
the 40,000 level on Tuesday. The index rose too fast."
Uniqlo-owner Fast Retailing 9983.T rose 1.06% to become
the biggest support to the Nikkei. Chipmaking device supplier
Disco 6146.T jumped 7.67%.
Technology investor SoftBank Group 9984.T lost 0.65% to
weigh the most on the Nikkei.
Chip-related stocks Advantest 6857.T and Tokyo Electron
8035.T fell 0.42% and 0.13%, respectively.
"Despite the yen's weakness and the strength of U.S.
equities, gains of domestic shares are limited. That is partly
due to uncertainties about Japanese politics," said Shoichi
Arisawa, general manager of the investment research department
at IwaiCosmo Securities.
Japan's ruling party may lose its majority in the lower
house, according to media polling ahead of the Oct. 27 election,
meaning it would likely have to rely on coalition partner
Komeito to stay in power.
The U.S. dollar headed for its third weekly rise in a row,
after touching 150 yen against the Japanese currency for the
first time since Aug. 1. FRX/
A softer yen tends to help exporter shares as it increases
the value of overseas profits in yen terms when firms repatriate
them to Japan.
(Reporting by Junko Fujita; Editing by Sumana Nandy)
((junko.fujita@thomsonreuters.com;))