Japan’s Nikkei closes at peak of one-and-a-half year with shareholder gains

Japan’s Nikkei index closed at a year-and-a-half high on Friday, driven by gains from major chip makers and with investors welcoming local companies announcing returns on equities at the peak of the financial results season.

Nikki ended the session up 0.9%, marking 2,9388.30 points in the highest close since November 2021. For the entire week, the index rose 0.79%.

The broader Topix index climbed 0.64 percent to 2096.39 points and recorded a weekly rise of 1 percent.

Sichi Suzuki, Senior Stock Market Analyst at Tokai Tokyo Research Institute, said: “The expectations of the results of all companies’ businesses were not necessarily positive. We have seen some positive results but also disappointing results “.

“But many companies have announced share buybacks and other measures to award returns and profits to shareholders. this enhanced investor sentiment and provided market support “.

Mitsubishi Corp and its counterparts announced over the week that shareholders’ remuneration would continue in the current fiscal year, whether by raising cash dividends, repurchasing shares or both. Mitsubishi fell slightly 0.02% on Friday, but rose 6.3% in the week.

Tokyo Electron’s stock offset early trading losses to close at 3.21%, although Japan’s leading semiconductor equipment maker warned annual operating profit would come in below expectations. Its counterpart, Advantest Corp, also increased 3.32%.

SoftBank Group bucked the overall trend and its stock fell 3.68%, putting pressure on Nikkei after the tech-pumping company reported nearly three times more annual losses than market expectations.