Japan’s Nikkei closes lower, but records a weekly jump

Japan’s Nikkei average closed lower on Friday, after hitting a more than two-month high in the previous session, as investors sold shares of chip-related technology and growth companies to lock in gains. Still, losses were limited by hopes of a slowdown in rate hikes globally.

The Nikkei index fell 0.35 percent to close at 28,283.03 points, and rose 1.37 percent during the week. The broader Topix index fell 0.04 percent to 2,018.00 points, but it jumped 2.59 percent during the week.

“Investors sold stocks to book profits on Friday. This happened in stocks related to the chip industry, which have been performing strongly in the past few sessions,” said Shuji Hosui, chief strategist at Daiwa Securities.

“Overall, the market was supported by hopes of a slowdown in the pace of interest rate hikes by the European Central Bank, which led to a decline in the 10-year German bund yields,” he explained.

The jump in the Nikkei index in the previous session was supported by hopes for a slowdown in the pace of interest rate hikes by the US Federal Reserve.

Chipmaker Tokyo Electron Co. fell 0.78%, after jumping 3.21% for the week, while Adventist fell 0.96%, after rising 3.56% for the week.

Dentsu Group also fell 2.74 percent after a report that Tokyo prosecutors raided the advertising company and others over possible bid-rigging ahead of the Tokyo Olympics.

While the utilities sector rose 1.7 percent, becoming the biggest gainer among the 33 sub-indexes of the industry on the Tokyo Stock Exchange, with Tokyo Electric Power Company (TEPCO) rising 4.6 percent.