Japan’s Nikkei closes lower, but records a weekly jump

Japan’s Nikkei index closed lower on Friday, after hitting a more than two-month high in the last session, as investors sold shares of chip-related technology and growth companies to lock in gains, but losses were limited by hopes of a slowdown in global interest rate hikes.

According to Reuters, the Nikkei index fell 0.35 percent to close at 28,283.03 points, and rose 1.37 percent during the week. The broader Topix index also fell 0.04 percent to 2018.00 points, but it jumped 2.59 percent during the week.

“Investors sold shares to book profits on Friday. This happened in stocks related to the chip industry, which have performed strongly in the past few sessions

“In general, the market was supported by hopes for a slowdown in the pace of interest rate hikes by the European Central Bank, which led to a decline in German bond yields for 10 years.”

The jump in the Nikkei index in the previous session was supported by hopes for a slowdown in the pace of interest rate hikes by the US Federal Reserve.

Chipmaker Tokyo Electron Co. fell 0.78 percent, after jumping 3.21 percent for the week, while Adventist fell 0.96 percent, after rising 3.56 percent for the week.

Dentsu Group also fell 2.74 percent after a report that Tokyo prosecutors raided the advertising company and others over possible bid-rigging ahead of the Tokyo Olympics.

The utilities sector rose 1.7 percent, becoming the biggest gainer among the 33 sub-indicators of the industry on the Tokyo Stock Exchange, with Tokyo Electric Power Company (TEPCO) rising 4.6 percent.