Japan’s Nikkei hits 4-month high on Wall Street’s lead

[TOKYO] Japan’s Nikkei share average advanced to a four-month high on Tuesday (Jun 17), tracking overnight Wall Street gains following signs of a potential de-escalation of tensions in the Middle East.

Bank shares rose after the Bank of Japan signalled it is still on track to raise interest rates in the longer term. The broader equity market, however, largely shrugged off widely expected decisions to keep borrowing costs steady and slow the pace of government bond purchase reductions from next April.

The Nikkei closed 0.6 per cent higher at 38,536.74. Earlier in the day, it reached 38,581.25 for the first time since February 21. The broader Topix added 0.4 per cent.

The Topix banking index ended the day up 0.3 per cent, reversing morning session losses.

Japanese growth shares still outperformed, though, with a Topix index of the securities up 0.5 per cent, compared with a 0.2 per cent rise for value shares.

Chip-related stocks were among the Nikkei’s top performers. Disco was the biggest percentage gainer with a 6.3 per cent surge. Advantest climbed 2.4 per cent and Tokyo Electron advanced 2.9 per cent.

Out of the Nikkei’s 225 components, 136 rose, 83 fell, and six ended flat. REUTERS