Japan's Nikkei ekes out gains on softer yen in choppy trade

Sumitomo Electric Industries

14/11/2024 03:28

By Brigid Riley
       TOKYO, Nov 14 (Reuters) - Japan's Nikkei share average
edged higher on Thursday buoyed by a weaker yen, as investors
bought up stocks after a selloff in the previous session, but
struggled to maintain momentum as tech stocks tracked their U.S.
peers lower.
    The Nikkei  .N225  added 0.1% to 38,761.02 by the midday
break, while the broader Topix  .TOPX  climbed 0.5% to 2,720.93.
    AI-focused startup investor SoftBank Group  9984.T , down
1.8%, joined other heavyweight tech stocks' slide to drag on the
overall index.
    Tokyo Electron  8035.T  and Advantest  6857.T  fell 2.9% and
1.1%, respectively.
    The yen's slide against the U.S. dollar to its lowest level
since July 24 lent support to export shares, including to Toyota
Motor  7203.T  and Sony Group  6758.T , up 1.6% and 1.1%,
respectively.  FRX/ 
    A softer yen tends to boost Japanese exporters' overseas
earnings when repatriated, buoying trader sentiment.
    Among other shares, the largest percentage gainer on the
index was Mercari  4385.T , up 7.2%, followed by Kubota
 6326.T , which gained 6.9%.
    But the upward momentum eased and the Nikkei briefly dipped
into negative territory as the market awaited fresh direction.
    "My impression is that the upside (for gains on the Nikkei)
faces resistance," said Hiroshi Namioka, chief strategist at T&D
Asset Management.
    The so-called "Trump trades" have boosted U.S. shares to
record highs, in turn lifting Japanese equities back toward the
psychologically significant 40,000-point level last week.
However, the Nikkei has since faltered.
    The benchmark index declined for the second straight day on
Wednesday as investors booked profit and weighed the potential
negative impact on Japan from the incoming Trump
administration's stance on trade and tariffs.
    Meanwhile, "there haven't been any particularly noticeable
policies, by which I mean policies that determine the direction
of the market, coming out," Namioka said.
    Amid the uncertainty, the Nikkei is likely to hold in the
38,000-40,000 yen range in the medium-term, he added.

 (Reporting by Brigid Riley; Editing by Sumana Nandy)
 ((brigid.riley@thomsonreuters.com;))