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Nikkei ends at two-week high on US tariff relief, chip rally
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Nikkei ends at two-week high on US tariff relief, chip rally
May 29, 2025 12:19 AM

(Adds comments, updates with closing prices)

TOKYO, May 29 (Reuters) - Japan's Nikkei ended trade on

Thursday at the highest point in more than two weeks after a

U.S. court blocked President Donald Trump's tariffs from going

into effect, while a weaker yen and a rally in chip-related

stocks also supported the benchmark index.

The Nikkei climbed 1.88% to 38,432.98, its highest close

since May 13.

The broader Topix rose 1.53% to 2,812.02.

The Manhattan-based Court of International Trade ruled that

Trump overstepped his authority by imposing across-the-board

duties on imports from nations that sell more to the United

States than they buy.

"The news was positive as Trump's tariff plans are a

headwind for the corporate and economic outlook," said Kentaro

Hayashi, senior strategist at Daiwa Securities.

"And the yen weakened on the news, which drove a rally in

the auto sector," he said.

The U.S. dollar surged following the court decision, pushing

the yen to fall as low as 146.26 against the greenback. A weaker

yen boosts the value of overseas revenues.

Chip-related shares jumped after Nvidia ( NVDA ) beat

quarterly sales expectations, with Advantest ( ADTTF ) and Tokyo

Electron ( TOELF ) rising 5.35% and 4.25%, respectively.

Cable maker Fujikura ( FKURF ), a gauge for AI investments,

jumped 5.54%. It lifted the nonferrous metals sector

by 5.8%, making it the top performer among the Tokyo Stock

Exchange's 33 industry sub-indexes.

Shares of Toyota Motor ( TM ) rose nearly 4%, helping lift

the auto and auto parts sector by 3.39%.

Hino Motors ( HINOF ) and Nissan Motor ( NSANF ) jumped nearly

6% each.

On the other hand, toy maker Bandai Namco Holdings ( NCBDF )

fell 2.96% to drag the Nikkei the most.

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