Roundup: Japan’s Nikkei ends higher as tech issues follow U.S. peers higher

TOKYO, Jan. 24– Japan’s benchmark Nikkei stock index ended at a more than one-month high Tuesday, with technology issues following their U.S. peers higher as earnings season swings into gear. Dealers here said that along with U.S. shares rallying overnight, investor sentiment was also lifted by reports the U.S. Federal Reserve might halt its rate hikes as early as…

TOKYO, Jan. 24 (Xinhua) — Japan’s benchmark Nikkei stock index ended at a more than one-month high Tuesday, with technology issues following their U.S. peers higher as earnings season swings into gear.

The 225-issue Nikkei Stock Average added 393.15 points, or 1.46 percent, from Monday to close the day at 27,299.19, marking its highest closing level since Dec. 16 last year.

The broader Topix index, meanwhile, gained 27.54 points, or 1.42 percent, to finish at 1,972.92.

Dealers here said that along with U.S. shares rallying overnight, investor sentiment was also lifted by reports the U.S. Federal Reserve might halt its rate hikes as early as this spring.

“The Nikkei index has returned to the level where it was and that was it. With a series of earnings announcements for domestic firms starting from today, we are not sure what will happen to the market going forward. The earnings will have to be strong to keep this momentum,” Chihiro Ohta, assistant general manager at SMBC Nikko Securities’ investment research and investor services, was quoted as saying.

Technology issues here in particular got a boost from the tech-heavy Nasdaq closing higher overnight, along with a report carried in the Wall Street Journal on Sunday suggesting the Fed may halt its rate hikes in spring adding to a risk-on mood, local brokers said.

“The WSJ report sparked optimism that rate cuts later this year may be a possibility if the Fed puts a stop to its rate hikes this spring. Such a mood may last until the Fed’s policy meeting starting from Jan. 31,” Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities Co., said.

Among high tech issues finding favor, chip-making equipment maker Tokyo Electron gained 2 percent, while chip-testing equipment maker Advantest climbed 3.1 percent.

Air-conditioning maker Daikin Industries added 2.1 percent, while Nikkei heavyweight, technology investor SoftBank Group, ended 4 percent higher.

Battery maker GS Yuasa was a notable winner, jumping 3.8 percent, after it said it would team up with Honda Motor to develop high-output lithium-ion battery for electric vehicles through a joint venture.

Honda itself closed 1.2 percent higher.

Bucking the upward trend, iron and steel issues were sold for profits, with Nippon Steel falling 2.8 percent.

The majority of the 33 industry categories closed in positive territory, with machinery, electric appliance and precision instrument-oriented comprising those that gained the most.

The turnover on the second trading day of the week came to 2,834.52 billion yen (21.79 billion U.S. dollars). Enditem