Tokyo stocks flat as chip shares bought, gains locked in

This file photo shows the Tokyo Stock Exchange. (Mainichi)

TOKYO (Kyodo) — Tokyo stocks ended flat Wednesday, as advances led by some semiconductor-related issues and exporters were offset by moves to lock in gains after the Nikkei briefly topped the 38,000 threshold.

The 225-issue Nikkei Stock Average ended down 1.71 points from Tuesday at 37,722.40. The broader Topix index finished 0.02 point higher at 2,769.51.

On the top-tier Prime Market, gainers were led by insurance, and oil and coal product issues, while service, and iron and steel shares declined.

The U.S. dollar briefly strengthened to the upper 144 yen range in Tokyo as the Japanese currency was sold amid speculation that the Finance Ministry may consider reducing issuance of superlong-term bonds, dealers said.

At 5 p.m., the dollar fetched 144.14-16 yen compared with 144.28-38 yen in New York and 143.73-75 yen in Tokyo at 5 p.m. Tuesday.

The euro was quoted at $1.1327-1328 and 163.27-31 yen against $1.1323-1333 and 163.47-57 yen in New York and $1.1340-1341 and 163.00-04 yen in Tokyo late Tuesday afternoon.

The yield on the benchmark 10-year Japanese government bond ended at 1.515 percent, up 0.055 percentage point from Tuesday’s close, as the debt was sold after an auction for a 40-year bond by the Finance Ministry drew a weak demand.

Stocks were initially supported by some heavyweight chip shares after U.S. tech giant Nvidia soared on a report that it plans to launch a new cheaper artificial intelligence chip for China, brokers said.

“Buying was also likely fueled by hopes for favorable earnings” when Nvidia Corp. releases its report early Thursday, Japan time, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

The weaker yen also helped lift export-oriented auto issues as the yen’s depreciation increases exporters’ overseas profits when repatriated.

However, the benchmark Nikkei later lost momentum as investors sold to lock in gains, while a rise in Japanese long-term interest rates also weighed on the market.