Japan’s Nikkei moves higher driven by stronger Yen

Nikkie edges higher: Japan's Nikkei share average edged slightly higher on Thursday, facing headwinds from the yen's unexpected appreciation and a mixed performance on Wall Street.

By midday close, the Nikkei managed a modest 0.07 per cent increase to reach 38,299.71, while the broader Topix.TOPX saw a 0.11 per cent gain, reaching 2,732.33.

Investors remained cautious ahead of a long holiday weekend, refraining from significant market moves. The US Federal Reserve's recent monetary policy meeting concluded without major surprises, keeping interest rates unchanged. While the Fed acknowledged subdued inflation readings, indicating a possibility of future rate cuts, it maintained a cautious stance.

Kenji Abe, equities strategist at Daiwa Securities, noted relief among investors regarding the Fed's indication of minimal rate hike probabilities amidst lingering concerns about high inflation.

However, the yen's surge against the dollar, suspected to be a result of Tokyo's intervention, tempered gains for export-oriented shares, typically benefiting from a weaker currency. The dollar was trading around 155.84 yen JPY=.

Automakers Toyota Motor 7203.T and Honda Motor 7267.T recorded modest gains of 0.3 per cent and 0.1 per cent, respectively. Conversely, Sony Group 6758.T saw a 0.2 per cent decline, while Keyence Corp 6861.T edged up by 0.1 per cent.

Meanwhile, US stocks experienced a mixed performance overnight, with the Philadelphia Semiconductor Index.SOX facing pressure following disappointing quarterly results from tech companies Advanced Micro Devices AMD.O and Super Micro Computer SMCI.O. Consequently, Tokyo Electron 8035.T, a major chip-making equipment manufacturer, saw gains capped at 0.7 per cent.

Chip-testing equipment maker Advantest 6857.T slid 0.2 per cent, and SoftBank Group 9984.T, an AI-focused startup investor, fell by 0.3 per cent.

(With Reuters inputs)