Nikkei inches up after U.S. tech gains, near 30-year high in dollar terms

  • Reuters
  • Stock Market News
Nikkei inches up after U.S. tech gains, near 30-year high in dollar terms
Credit: © Reuters.

By Hideyuki Sano

TOKYO, Aug 19 (Reuters) - Japan's Nikkei eked out small gains on Wednesday, as some technology firms rallied after U.S. tech giants drove the S&P 500 to a record peak overnight, and in dollar terms the benchmark is very close to reaching a three-decade high.

The Nikkei share average .N225 rose 0.26% to 23,110.61, after two straight sessions of losses. The broader Topix .TOPX edged up 0.18% to 1,613.73. In dollar terms, it stood at 219.10, just 0.3% below its 2019 peak, which was the highest since 1990.

"Some technology shares that benefit from new types of demand after the coronavirus epidemic will continue to do well. But for the overall stock index to rise, investors need more positive factors to buy," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley (NYSE: MS ) Securities.

Softbank Group 9984.T , which invests in tech firms around the world, rose 3.3% while Nintendo 7974.T gained 1.0% to a 12-year high.

IT equipment and service firms Fujitsu 6702.T and NEC 6701.T gained 2.4% and 3.7%, respectively.

The Mothers index .MTHR rallied to a two-year high, with Modalis Therapeutics 4883.T , which listed earlier this month, gaining 10.4%.

Sony 6758.T , meanwhile, dropped 2.8% following the news that Third Point LLC has sold off a large part of its investment in the company, although some investors think the long-term impact of the U.S. activist fund's move would be negligible. was also under pressure due to concerns over Washington's tightening restrictions on sales to China's Huawei Technologies HWT.UL .

Other Huawei suppliers also dropped, with Taiyo Yuden 6976.T losing 1.3% and Murata Manufacturing 6981.T shedding 0.8%.

The market showed little reaction to domestic data showing an unexpected drop in machinery orders as well as a fall in exports. was slow due to summer lull, with the main board's turnover at 1.697 trillion yen .VM1.T about 30% below the average.

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