Japan's Nikkei rises as tech stocks track US growth shares higher

Shin-Etsu Chemical

03/07/2024 03:11

TOKYO, July 3 (Reuters) - Japan's Nikkei share average
rose on Wednesday as heavyweight technology stocks tracked U.S.
megacap growth stocks higher overnight.  
   The Nikkei  .N225  was up 0.81% at 40,398.35 as of 0142 GMT,
after opening 0.38% higher.     
    Wall Street stock indexes closed higher on Tuesday, boosted
by gains in Tesla  TSLA.O  and megacap growth stocks, but
volumes were thin ahead of the July 4 holiday and the closely
watched release of June nonfarm payrolls on Friday.  .N 
    The broader Topix  .TOPX  inched up 0.13% to 2,860.26, and
is set to log a fourth straight session of gains.
    "Investors rotated their targets today. They sold
outperforming shares to take profits and bought cheaper stocks,"
said Naoki Fujiwara, senior fund manager at Shinkin Asset
Management. 
    "The Nikkei tracked Wall Street, higher but also those who
were late in catching up the recent rally bought Nikkei futures,
which lifted the main index," said Fujiwara.
    Topix's growth stock index  .TOPXG , which lags behind the
value share index for its weekly performance, rose 0.46%, while
the value share index  .TOPXV  slipped 0.34%.
    Chip-making equipment maker Tokyo Electron  8035.T  rose
2.48% to provide the biggest boost to the Nikkei. Chip-testing
equipment maker Advantest  6857.T  gained 1.64%.     
    Electronic components maker TDK  6762.T  jumped 3.99% and  
silicon wafer maker Shin-Etsu Chemical  4063.T  climbed 2.4%.
    Conglomerate Hitachi  6305.T  slipped 2.08% to weigh on the
Topix the most. Toyota Motor  7203.T  fell 0.9%. 
    Insurer Tokio Marine Holdings  8766.T  dropped 1.56% and
banking group Mitsubishi UFJ Financial Group  8306.T  slipped
0.5%. 
    Of the more than 1,600 stocks trading on the Tokyo Stock
Exchange's prime market, 50% of the shares rose, while 45% fell
and 3% were unchanged. 

 (Reporting by Junko Fujita; Editing by Sonia Cheema)
 ((junko.fujita@thomsonreuters.com;))