TOKYO, June 24 (Reuters) - Japanese shares advanced on
Friday, with tech stocks leading the rise after sharp overnight
gains on Wall Street, while sentiment was also aided by the
domestic central bank's loose monetary policy.
The Nikkei share average rose 1.23% to 26,491.97,
accelerating gains after U.S. futures climbed. The index posted
a weekly gain of 2.04%, but has fallen 2.89% so far this month.
The broader Topix rose 0.81% to 1,866.72 and marked
a 1.68% weekly gain.
Overnight, Wall Street's main indexes posted solid gains,
fuelled by strong performance from defensive and tech shares
that outweighed declines for economically sensitive groups as
worries persisted about a potential recession.
"Recent losses in domestic equities were driven by concerns
about an economic slowdown due to the Federal Reserve's
tightening monetary policy but Japan's environment is
different," said Shigetoshi Kamada, a general manager with
Tachibana Securities' research department.
"Japan's stock market is in a favourable position. But
whether this situation will continue in the long term is
questionable and it will depend on the direction of U.S.
The Bank of Japan last week maintained ultra-low rates, even
though several central banks across the globe have tightened
policies to tame rising inflation, which is spurring fears of a
In Japan, chip-making equipment maker Tokyo Electron
rose 3.98% and provided the biggest boost to the
Nikkei. Technology investor SoftBank Group rose 2.37%
and air-conditioning maker Daikin Industries climbed
Drug maker Shionogi & Co jumped 4.98% after
announcing a share buyback.
Automakers dropped, with Mitsubishi Motors shedding
nearly 8% to become the worst performer on the Nikkei.
Toyota Motor and Subaru slipped 0.71% and
2.89%, respectively, after the two car makers announced recalls
of their first mass-produced electric vehicles for the global
(Reporting by Junko Fujita, additoinal reporting by Tokyo
markets team; Editing by Subhranshu Sahu)