The Nikkei 225 index rose for a third day, as chip-related names were boosted by overnight gains in the US technology shares. The Topix index fluctuated during the day ahead of the US-China trade talks. 

Topix Index was virtually unchanged at 2,786.24 as of market close Tokyo time

Nikkei advanced 0.3% to 38,211.51

The Philadelphia Semiconductor Stock Index, or SOX, climbed almost 2% overnight. That helped Tokyo-listed tech companies such as Taiyo Yuden, Rohm and Renesas Electronics. Exporters, such as the electric appliances sector, were helped by a steady yen, which was unchanged at 144.58 to the dollar. 

"The rise in US semiconductor stocks is being buoyed by strong 12-month profit growth, which will be a tailwind for Japanese semiconductor-related shares," said Hideyuki Ishiguro, chief strategist at Nomura Asset Management. Overseas investors appear to be continuing their purchases of large-cap and economically sensitive stocks, he said.

Investors continue to monitor how the US-China trade talks play out. The talks will continue into a second day, according to a US official, as the two sides look to ease tensions over shipments of technology and rare earth elements. 

"US stock futures and Japanese stocks have pared gains, Chinese and Hong Kong stocks have declined, the USD/JPY exchange rate has shifted toward a stronger yen, and gold has gone up, it is highly likely that these movements are the result of position adjustments" ahead of the US-China talks, said Jumpei Tanaka, head of investment strategy at Pictet Asset Management. 

Source : Bloomberg