Japan Nikkei The stock average rose in a choppy session on Monday, as gains in technology stocks lifted the benchmark index, while caution ahead of a national election and corporate earnings weighed on sentiment.
He Nikkei managed to turn around after starting in the red, rising 0.3 percent to 39,110.95 at the midday break, while the broader Topix rose 0.04 percent to 2,689.99.
Domestic tech stocks followed their U.S. peers higher after a jump fueled by gains in Netflix stock and broader gains in tech stocks on Friday.
The Dow Jones Industrial Average and S&P 500 closed at record highs on Friday, and the Nasdaq also moved into positive territory, thanks to technological momentum.
Nikkei Chip testing equipment maker Advantest rose 2.2 percent to deliver the biggest increase, followed by chip manufacturing equipment giant Tokyo Electron, which added 1.1 percent.
But the index struggled to gain momentum outside of technology stocks, which analysts attributed to caution ahead of more earnings announcements from companies later this week.
General elections will also be held in Japan on October 27, where it remains to be seen whether the country’s ruling party, the Liberal Democratic Party (LDP), will manage to win the 233 seats needed to maintain a majority in the lower house. itself.
“It appears that investors are holding back from active trading in anticipation of these developments,” creating strong upside resistance, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
If the LDP fails to maintain its majority in the next election, that could “increase uncertainty and potentially lead to greater volatility in the market,” he added.
Among other major declines, Uniqlo parent company Fast Retailing lost 0.2 percent, along with telecommunications company KDDI 0.8 percent and pharmaceutical company Daiichi Sankyo 1.3 percent.
Of the Nikkei Of the 225 electors, 104 advanced and 118 retreated.
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