Japan's Nikkei rises as tech stocks rally ahead of Warsh speech

Business Recorder reported that Japan's Nikkei rose 0.8% to 66,682.88 at midday, with technology shares providing most of the support. Chip-related names Advantest and Tokyo Electron gained 2.1% and 1.5%, while security software firm Trend Micro jumped 5.5% and Fujitsu added 4.5%. Of the 225 index components, 139 advanced and 80 declined, while the broader Topix edged up 0.9% to 4,152.88.

Tech gains were supported by overnight strength on Wall Street, where the Philadelphia SE semiconductor index rallied 2.3% on Thursday. Sentiment was tempered as bond yields climbed and oil prices edged higher over Middle East uncertainty. Tokyo inflation figures released on Friday also firmed, lending support to expectations of a Bank of Japan rate increase. Over the week, the Nikkei is set for a 1% gain and the Topix for a 2.1% rise.

Attention now turns to Federal Reserve Chair Kevin Warsh, who speaks later in the day at the central bank's Jackson Hole symposium. Three of the Fed's policymakers have already voiced worry about persistent inflation, yet Warsh has declined to signal the path of rates. Maki Sawada, a strategist at Nomura Securities, said investors were waiting to hear the speech before committing money, keeping trade muted.