TOKYO, Oct 21 (Reuters) - Japan's Nikkei share average
rose in a choppy session on Monday, as gains in technology
stocks lifted the benchmark index, while caution ahead of a
domestic election and corporate earnings weighed on sentiment.
The Nikkei managed to turn around after starting in
the red, rising 0.3% to 39,110.95 by the midday break, while the
broader Topix was up 0.04% at 2,689.99.
Domestic tech shares followed their U.S. peers higher after
an earnings-driven jump in Netflix shares and broader gains
across tech stocks on Friday.
The Dow Jones Industrial Average and S&P 500 chalked up
record closing highs on Friday, with the Nasdaq also in positive
territory, thanks to the tech bump.
Nikkei heavyweight chip-testing equipment maker Advantest ( ADTTF )
was up 2.2% to offer the biggest lift, followed by
chip-making equipment giant Tokyo Electron ( TOELF ), adding
1.1%.
But the index struggled for momentum outside of tech shares,
which analysts attributed to caution before more company
earnings announcements later this week.
A general election will also be held in Japan on Oct. 27,
where it remains to be seen whether the nation's ruling party,
the Liberal Democratic Party (LDP), will succeed in winning the
233 seats needed to keep a lower-house majority by itself.
"It seems like investors are refraining from active trading
in anticipation of these events", creating a heavy upward
resistance, said Masahiro Ichikawa, chief market strategist at
Sumitomo Mitsui DS Asset Management.
If the LDP fails to retain a majority in the upcoming
election, that could "heighten uncertainty and potentially lead
to increased volatility in the market", he added.
Among other major decliners, Uniqlo parent firm Fast
Retailing ( FRCOF ) edged down 0.2%, along with telecoms company
KDDI ( KDDIF ) slipping 0.8%, and pharmaceutical firm Daiichi
Sankyo ( DSKYF ) losing 1.3%.
Of the Nikkei's 225 constituents, 104 advanced while 118
declined.