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Japan's Nikkei reverses course to end higher as chip stocks narrow losses
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Japan's Nikkei reverses course to end higher as chip stocks narrow losses
Mar 14, 2024 12:10 AM

(Updates prices to close)

TOKYO, March 14 (Reuters) - Japan's Nikkei share average

changed course to end higher on Thursday, as heavyweight

chip-related stocks narrowed early losses and energy shares

gained.

The Nikkei closed 0.29% higher at 38,807.38, after

three straight sessions of losses. The index fell as much as

0.76% earlier in the session.

The broader Topix rose 0.49% to 2,661.59.

"Japan's major chip stocks mirrored the weak performance of

U.S. chip stocks. It looks like the fever for Nvidia ( NVDA ) is over,"

said Shigetoshi Kamada, general manager at the research

department at Tachibana Securities.

"For the Nikkei to cross the 40,000 level again, Tokyo

Electron ( TOELF ) and its peers need to get a boost."

The S&P 500 and Nasdaq edged lower overnight as

investors took profits in chipmaker stocks. The index of

semiconductors lost 2.5%, with shares of Nvidia ( NVDA ).

which propelled a sharp rally in Japanese chip-related shares,

slipping 1.1%.

The Nikkei crossed 40,000 for the first time earlier this

month, driven by gains of chip-making equipment maker Tokyo

Electron ( TOELF ) and chip-testing equipment maker Advantest ( ADTTF )

.

On Thursday, Tokyo Electron ( TOELF ) and Advantest ( ADTTF ) fell 0.45% and

2.35%, respectively.

Utility firms rose 4.12% to become the top

performer among the 33 industry sub-indexes on the Tokyo Stock

Exchange, with Tokyo Electric Power Holdings jumping

6.76%.

Energy explorers rose 4.09%, with Eneos Holdings ( JXHGF )

gaining 5.32%.

Nissan Motor ( NSANF ) jumped 2.23% after a local television

network TV Tokyo reported that the automaker is considering

seeking a business partnership with Honda Motor ( HMC ), while

the Nikkei business daily said they could collaborate on

electric vehicles.

Honda ( HMC ) rose 1.13%.

Uniqlo-owner Fast Retailing ( FRCOF ) rose 1.62% to become

the biggest support for the Nikkei.

Of the 225 components on the Nikkei, 174 stocks rose, while

51 fell.

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