Japan's Nikkei tracks Wall Street higher, eyes ASML earnings
SOXX•Nikkei gains as investors watch ASML results
Tokyo, July 15 (Reuters) - Japan's Nikkei share average traded higher on Wednesday, tracking overnight gains on Wall Street, but the advance was checked as investors grew cautious ahead of chip equipment maker ASML's earnings due later in the day.
The Nikkei .N225 was up 0.58% to 68,136 as of 0152 GMT, after rising as much as 1.5% earlier in the session.
The broader Topix .TOPX edged up 0.21% to 4,047.62.
Overnight, the S&P 500 and the Nasdaq advanced as solid results from big banks and a cooler-than-expected inflation report boosted risk appetite amid rising tensions in the Middle East. .N
The U.S. semiconductor index .SOX, a barometer for Japanese chip-related shares, rose 2.54%.
"The U.S. shares were strong overnight, but the market is now cautiously waiting for the outcome of ASML earnings," said Hitoshi Asaoka, chief strategist at Asset Management One.
The Netherlands-based ASML ASML.AS, the biggest supplier of equipment used to manufacture AI chips, reports quarterly earnings on Wednesday, looking to justify its chunky valuation and demonstrate how it will contend with U.S. moves to block exports to China.
Its peer Tokyo Electron rose 2.67%, and chip-testing equipment maker Advantest6857.T was up 3%.
Financial stocks rose, with Mitsubishi UFJ Financial Group 8306.T and Nomura Holdings 8604.T gaining 1.5% and 2.87%, respectively.
Shares of system developers fell following a 25% decline of IBM IBM.N overnight after the company warned second-quarter revenue would fall below estimates.
NEC 6701.T and Nomura Research 4307.T fell 5% each, while computer maker Fujitsu 6702.T was down 4.2%. Consulting firm BayCurrent6532.T fell 5.17%.
SoftBank Group 9984.T fell 2.74%, weighing most on the Nikkei. Uniqlo-brand owner Fast Retailing 9983.T slipped 0.49%.
