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    Japanese shares end higher on chip stocks boost; corporate outlook worries cap gains

    Synopsis

    The Nikkei index ended up 0.14 per cent at 29,683.37, while the broader Topix inched up 0.09 per cent to close at 1,960.87.

    Japan sharesAP
    Chip-related shares gained after Taiwan Semiconductor Manufacturing Ltd (TSMC), reported a 19.4 per cent rise in first-quarter profit on strong chip demand.
    TOKYO: Japanese shares closed slightly higher on Friday as heavyweight chip shares rallied, although concerns around corporate outlook capped the gains.

    The Nikkei index ended up 0.14 per cent at 29,683.37, while the broader Topix inched up 0.09 per cent to close at 1,960.87.

    Chip-related shares gained after Taiwan Semiconductor Manufacturing Ltd (TSMC), reported a 19.4 per cent rise in first-quarter profit on strong chip demand.

    Advantest rose 0.38 per cent, Tokyo Electron gained 0.37 per cent and Renesas Electronic jumped 2.48 per cent.

    But, NLI Research Institute's chief equity strategist Shingo Ide points out that investors are getting cautious about corporate outlook ahead of earnings season starting next week as their expectations were so high.

    Electronic components maker Nidec will kickstart earnings for major Japanese manufacturers on Thursday.

    Robot maker Yaskawa, the leading indicator on Japanese manufacturers' earnings trend, this week disappointed investors with its profit outlook and its stock has lost more than 7 per cent this week.

    Aiding the cautious stance is the likely expansion of quasi-emergency measures to 10 regions due to a surge in cases of the novel coronavirus.

    Among individual shares and sectors, Toshiba dropped 6.03 per cent after a report that the conglomerate told its lenders that it plans to reject a buyout proposal from private equity firm CVC Capital Partners.

    Toho, up 3.95 per cent, was the largest percentage gainer on the Nikkei index, followed by Marui Group gaining 3.18 per cent and Daiwa House Industry, up 3.06 per cent.

    Tokyo Electric Power, down 4.73 per cent, was the largest percentage loser on the Nikkei, followed by Sharp, losing 3.07 per cent, and Screen Holdings down 2.92 per cent.

    There were 117 advancers on the Nikkei index against 106 decliners.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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