Nikkei closes higher supported by tech shares

Today, Wednesday, the Japanese Nikkei index continued to rise for the fourth day in a row, supported by shares of influential major technology companies that tracked gains achieved by growth shares of giant companies in the United States overnight.

The Nikkei index rose 1.26% to close at 40,580.76 points.

The broader Topix index also increased for the fourth day in a row, closing 0.54% higher at 2,872.18 points.

The main stock indices on Wall Street closed higher late yesterday evening, Tuesday, supported by the gains of Tesla and shares of large, fast-growing companies, but trading volumes were limited before the Fourth of July holiday and with anticipation of the release of the non-farm payrolls report for June on Friday.

“Investors adjusted their positions today,” said Naoki Fujiwara, a fund manager at Shinkin Asset Management. “They sold outperforming stocks to take profits and bought cheaper stocks.”

Tokyo Electron shares, which manufacture chip-making equipment, jumped 2.6%, providing the biggest support to the Nikkei index. Advantest, a manufacturer of chip testing equipment, also rose 2.38%.

TDK shares, which manufacture electronic components, jumped 5.24 percent, and shares of Shin-Etsu Chemical, which specializes in manufacturing silicon chips, rose 2.22 percent.

But Hitachi shares fell 1.58%, having the largest downward impact on the Topix index. Tokyo Marine Holdings shares also fell by 1.18%, and Toyota Motor shares fell by 0.24%.

Of the more than 1,600 stocks traded on the main market of the Tokyo Stock Exchange, 59% rose and 37% fell.

The machinery sector increased 2.2% and was the best performer among the 33 sector sub-indices on the Tokyo Stock Exchange.