Nikkei Rises on Tech Gains Amid Inflation Concerns

Japan's Nikkei share average rose on Friday, driven by gains in technology and chip-related stocks. The index advanced 0.8% to 66,682.88 by midday, with the broader Topix gaining 0.9% to 4,152.88.

The Nikkei was on track for a weekly gain of about 1%, while the Topix was headed for a 2.1% advance. Chip-related heavyweights led the gains, with Advantest rising 2.1% and Tokyo Electron up 1.5%. Trend Micro jumped 5.5%, making it the biggest percentage gainer on the Nikkei.

Japanese technology shares benefited from gains on Wall Street overnight, with the Philadelphia Semiconductor Index rising 2.3% on Thursday. However, inflation concerns and uncertainty surrounding the Middle East kept investors cautious.

Data released on Friday showed that underlying inflation in Tokyo accelerated for a third consecutive month in August. The figures strengthened expectations that the Bank of Japan could consider raising interest rates.