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Japan's Nikkei rises on weak yen and domestic earnings
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Japan's Nikkei rises on weak yen and domestic earnings
Nov 11, 2024 7:21 PM

TOKYO, Nov 12 (Reuters) - Japan's Nikkei share average

rose on Tuesday, buoyed by a softer yen and domestic corporate

earnings, although semiconductor-related shares logged declines,

capping gains on the benchmark.

The Nikkei was up 0.5% at 39,748.13 by the midday

break, while the broader Topix rose about 1% to

2,766.36.

Investor sentiment was up after Wall Street's main indexes

notched record high closes on Monday as Trump-linked stocks

continued to advance.

Meanwhile, a weaker yen offered support for Japan's

export-related shares, with automakers rallying. Toyota Motor ( TM )

and Suzuki Motor ( SZKMF ) added 3.4% and 4%,

respectively.

While automakers' revenue reports this season suffered from

factors including a delay in production recovery, recent yen

depreciation has the market considering it a "potential tailwind

for future performance," said Nomura Securities strategist Maki

Sawada.

The transport equipment sector, which includes

Toyota Motor ( TM ) and other automakers, was one of the best

performing sectors, up 2.9%.

Financial shares also gained after some positive earnings

releases on Monday. Major banks such as Mizuho Financial Group

announce their results later in the week.

The banking sector climbed about 2.2%.

Investors also had their eyes on financial reports from

Nikkei heavyweights later on Tuesday, including releases from

AI-focused startup investor SoftBank Group and

chip-making equipment giant Tokyo Electron ( TOELF ) after the

market closes.

Chip-related shares were the biggest drag on the Nikkei,

following a 2.5% decline on the Philadelphia SE Semiconductor

index on Monday. Investors were weighing a Reuters report

published over the weekend that the U.S. ordered Taiwan

Semiconductor Manufacturing Co ( TSM ) to halt shipments of

advanced chips to Chinese customers.

Chip-testing equipment maker Advantest ( ADTTF ) fell 2.7%,

along with Tokyo Electron ( TOELF ), down 1.8%, Lasertec ( LSRCF ), sliding

3.6%, and Disco Corp ( DISPF ), losing 2.1%.

Among other shares, staffing agency Recruit Holdings ( RCRRF )

was last up 5.1% after upwardly revising its profit

outlook on Monday.

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