Japan Shares Closed Higher Thanks to a boost From Chip Companies

Japanese shares closed slightly higher on Friday as chip heavyweight stocks rose, but concerns about corporate expectations dampened gains.

The Nikkei index rose 0.14% to 29,683.37 points, while the broader Topix index rose 0.09% to close at 1960.87.

Chip-related shares gained after the Taiwan semiconductor maker reported a 19.4% increase in first-quarter profit due to strong demand for chips.

Advantest gained 0.38%, Tokyo Electron gained 0.37%, and Renesas Electronics jumped 2.48%.

But Shingo Eddy, an equity strategist at Research Institute, NLI, indicated that investors are cautious about company expectations ahead of the earnings season that begins next week as their expectations are very high.

Toshiba shares fell 6.03% after a report said the giant group had informed its lenders it intended to reject a takeover bid from private equity firm CVC Capital Partners.

Toho, which rose 3.95%, was the biggest percentage gainer on the Nikkei index, followed by Maori Group which gained 3.18%, and Daiwa House Industry, which rose 3.06%.

Tokyo Electric Power, which fell 4.73%, was the largest percentage loser on the Nikkei, followed by Sharp, which lost 3.07%, and Screen Holdings, which fell 2.92%.

117 shares advanced on the Nikkei index, against a decline of 106.