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Japan stocks track Wall Street's solid finish to close week higher

Japan stocks track Wall Street's solid finish to close week higher

FILE PHOTO: First trading day of stock market in Tokyo

TOKYO: Japanese shares closed higher on Friday, as cyclicals and technology stocks tracked a strong finish on Wall Street, although the gains were capped by concerns over the country's economic recovery and amid a cautious outlook of U.S. equities.

The Nikkei share average rose 0.66per cent to close at 29,066.18, while the broader Topix advanced 0.80per cent to 1,962.65.

For the week, the Nikkei gained 0.35per cent to climb just above the 29,000-mark, which market participants said has become a psychological barrier as Japan's outlook of an economic recovery remains uncertain.

The Nasdaq and the S&P 500 closed at record highs overnight, while the Dow jumped almost 1per cent after U.S. President Joe Biden embraced a bipartisan Senate infrastructure deal.

"Today's (Friday) market is tracking Wall Street's strong gains. But investors, particularly in Japan, are getting wary of U.S. markets taking a pause anytime soon," Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities said.

"Prospects of an economic recovery in Japan are getting unclear as the number of new COVID-19 infections is on the rise again, and the pandemic could worsen as the country plans to conduct the Olympics."

Cyclical shares rose, with oil and coal developers and steel makers leading the Tokyo Stock Exchange's 33 sector sub-indexes.

Technology stocks also advanced, with Tokyo Electron rising 0.7per cent, Advantest jumping 1.5per cent, Fanuc gaining 1.66per cent.

Shares of Panasonic jumped 4.93per cent as a filing made by the conglomerate showed it had sold its entire stake in Tesla last fiscal year.

Crisis-ridden Toshiba ended 0.62per cent lower after rising up to 1.4per cent as shareholders voted out its board chairman and another director at its annual general meeting.

Mazda Motor Corp, up 8.7per cent, gained the most on the Nikkei, followed by Kobe Steel rising 4.8per cent.

Eisai, down 3.96per cent, was the biggest loser, followed by Mitsui OSK Lines losing 1.34 per cent and CyberAgent I down 1.29per cent.

(Reporting by Junko Fujita; Editing by Uttaresh.V and Sherry Jacob-Phillips)

Source: Reuters

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