Nikkei hits three-month highs after Wall St rally

Published: May 11, 2018 12:23:04 | Updated: May 14, 2018 10:19:59

File Photo (Reuters)

Nikkei share rose to three-month highs on Friday, buoyed by a surge on Wall Street after US inflation data eased concerns over the Federal Reserve hiking interest rates at an accelerated pace.

The Nikkei was up 0.75 per cent at 22,663.08 after brushing 22,714.29, its highest since Feb. 5. The index has gained about 1.0 per cent this week.

The broader Topix was up 0.56 per cent at 1,787.64, reports Reuters.

Chip-related shares rose after a surge by Apple lifted their US peers. Tokyo Electron gained 2.3 per cent, Advantest Corp added 1.0 per cent and Murata Manufacturing climbed 3.5 per cent.

Suzuki Motor Corp gained 7.0 per cent after the automaker reported that its operating profit jumped 40.3 per cent to 374.2 billion yen ($3.42 billion) for the year ended March, outperforming analyst estimates.

Suzuki also anticipates a 2.3 per cent rise in global vehicle sales this year to a record 3.3 million units.

With the earnings season in full swing corporate results dictated moves in other shares.

Panasonic Corp gained 4.7 per cent after the electronics conglomerate reported a 58 per cent surge in net profit for the year ended March to 236.04 billion yen thanks to growth in its automotive-related businesses.

Kirin Holdings advanced 1.8 per cent after the brewer’s operating profit increased 26.4 per cent to 74.4 billion yen in the January-March quarter.

Internet and e-commerce giant Rakuten Inc, on the other hand, lost 4.45 per cent. Rakuten saw its operating profit slip 30.5 per cent to 28.1 billion yen in the January-March quarter, with increases in e-commerce costs and its sponsorship deal with Spanish football club FC Barcelona seen to have weighed.

Of Tokyo’s 33 sub-indexes, 23 gained, led by precision machinery.

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