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Nikkei rises as US court halts Trump's tariffs, chip stocks rally
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Nikkei rises as US court halts Trump's tariffs, chip stocks rally
May 28, 2025 8:17 PM

(Adds comments, updates stock prices)

TOKYO, May 29 (Reuters) - Japan's Nikkei share average

rose to a more than two-week high on Thursday after a U.S. court

blocked President Donald Trump's tariffs from going into effect,

while a rally in chip-related stocks also lifted the index.

As of 0223 GMT, the Nikkei rose 1.7% to 38,347.05, its

highest level since May 13.

The broader Topix rose 1.44% to 2,809.27.

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

the yen down 0.7% to 145.86 against the greenback. A weaker yen

boosts the value of overseas revenues.

"The Nikkei's gains were limited even as we had a series of

positive cues, as the market was testing if the index would rise

further going forward," said Yusuke Sakai, a senior trader at

T&D Asset Management.

Chip-related shares jumped after Nvidia ( NVDA ) beat

quarterly sales expectations, with Advantest ( ADTTF ) and Tokyo

Electron ( TOELF ) rising 3.7% and 3.3%, respectively.

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

jumped 6.3%. It lifted the nonferrous metals sector

by 3.52%, making it the top performer among the Tokyo Stock

Exchange's 33 industry sub-indexes.

Automakers also advanced, with Toyota Motor ( TM ) rising

3.9%, helping lift the auto and auto parts sector by

3%.

Hino Motors ( HINOF ) jumped 7.8% to become the top

percentage gainer in the Nikkei.

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

fell 2.47% to drag the Nikkei the most.

(Reporting by Junko Fujita; Editing by Sherry Jacob-Phillips

and Varun H K)

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