Nikkei Rallies on Chip Stocks, But Traders Stay Cautious

The Nikkei index rose 0.8% by Friday's midday break due to gains in chip stocks, particularly Advantest and Tokyo Electron.

However, traders remained cautious as they waited for Fed Chair Kevin Warsh's Jackson Hole remarks and watched for signs that Japan's inflation is reaccelerating.

The day's lift was narrow, but clear: chip equipment makers climbed by 2.1% and 1.5%, echoing strength in US semiconductors.

Still, traders didn't fully lean in due to higher bond yields and firmer oil prices keeping risk appetite in check.