Topix grows more than 5 months as tech rally offsets drop in transport share
TOKYO, Sept. 2 (Reuters) – Japan’s Topix ended Thursday at a more than five-month high, recovering from earlier losses as a technology rally offset the drop in transport stocks.
The Topix rose 0.14% to 1,983.57, its highest closing level since March 29. The index recovered for a fourth consecutive session. The Nikkei stock average ended up 0.33% to its highest level since July 14 of 28,543.51.
NTT and Nintendo were the top two performers among the top 30 Topix names, gaining 2.03% and 1.81% respectively, while the Sony Group added 1.40%.
Chipmakers rose with Advantest adding 2.07% and Tokyo Electron 1.16%. Mobile game maker Nexon was the second best player in the Nikkei, rising 2.80%.
The best performer was the saucier Kikkoman, with a jump of 4.19%.
Those gains offset a slowdown from a record 13.36% collapse for West Japan Railway (JR West) after announcing it would sell new shares, which caused other rail and transportation shares to fall.
Despite overall gains, market participants said a monthly U.S. employment report due on Friday, seen as crucial to the Federal Reserve’s plans to gradually reduce the stimulus, kept investors cautious.
“It’s hard to chase the market higher, even though technically you can sense that there is a fundamental force supporting prices,” said a person from a national securities firm.
The three worst performing Nikkei stocks were all railroads. JR East fell 6.90% and JR Central fell 4.33%.
Airlines ANA Holdings and Japan Airlines fell 2.57% and 1.38% respectively.
The land transport sub-sector was the worst performer in Topix with a decline of 3.18%, while air transport fell 2.04%.
Reporting by the Tokyo markets team; Editing by Subhranshu Sahu and Rashmi Aich