Nikkei ends higher on chipmakers' boost ahead of US inflation data
EWJ•Nikkei rises ahead of U.S. inflation data
TOKYO, Aug. 12 (Reuters) - Japan's Nikkei share average rose on Wednesday ahead of key U.S. inflation data, supported by chip stocks and gains in South Korean shares, while jitters persisted over fading prospects for a breakthrough in the Middle East conflict.
The Nikkei .N225 climbed 0.83% to close at 67,524.06, after swinging between gains and losses earlier in the session. The broader Topix .TOPX ended 0.94% higher at 4,139.00.
All eyes are on the U.S. Consumer Price Index, due later in the day, for clues to the direction of Federal Reserve interest rates.
"Concerns about inflation appear to be contributing to a weak tone that is capping the stock market's upside," said Wataru Akiyama, an equities strategist at Nomura Securities, adding that the earnings growth outlook for AI-related firms had not yet deteriorated significantly.
Chip stocks lift the market as oil and geopolitical worries linger
Semiconductor-related shares, which weigh heavily on Japan's benchmark Nikkei index, turned positive after a mixed start.
Memory chipmaker Kioxia 285A.T gained 3.87% while chip manufacturing equipment maker Tokyo Electron 8035.T added 2.61%. Tech-heavy South Korea's index .KS11, which often moves in tandem with Nikkei, jumped 3.68%.
The U.S. and Yemen's Iran-aligned Houthis reported separate attacks on shipping on Tuesday, while Iran's top security official said the vital Strait of Hormuz shipping route will remain closed unless the United States accepts Iran's conditions to end the war.
The uncertainties drove oil prices higher on Wednesday, with Brent futures LCOc1 up 0.84% at $89.66 a barrel and U.S. West Texas Intermediate (WTI) crude CLc1 climbing 0.87% to $83.92. O/R
