June 6, 2018 / 3:09 AM / 19 days ago

Nikkei buoyed by tech sector but gains curbed; Subaru falls

TOKYO, June 6 (Reuters) - Japan’s Nikkei share average firmed on Wednesday morning but gains were limited as investors kept to the sidelines before major events this week, while technology stocks outperformed as their U.S. counterparts rallied.

The Nikkei gained 0.2 percent to 22,584.41 in a choppy session after opening a tad lower.

Technology companies Kyocera Corp, TDK Corp and Advantest Corp gained 1.5 percent, 1.0 percent and 1.2 percent, respectively, after the Nasdaq closed at a record high for the second day in a row.

But overall trade was thin as investors remained wary about global trade tensions and geopolitical risks, and as the market awaits the U.S. Federal Reserve’s policy meeting next week where it is expected to raise interest rates.

The While House said that U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe will meet on June 7, while a U.S.-North Korea summit is scheduled on June 12.

“The market’s attention is on these events so they will likely refrain from taking large positions now,” said Isao Kubo, equity strategist at Nissay Asset Management.

“Investors also want more clues about global economies because while the U.S. economy appears to be solid, other economies may not be.”

Financial stocks underperformed as global investors piled back into lower-risk government debt after Italy’s new prime minister vowed to enact economic policies that could balloon the nation’s already-heavy debt load.

Mitsubishi UFJ Financial Group fell 1.0 percent while Sumitomo Mitsui Financial Group was flat.

Subaru Corp declined 1.6 percent after the automaker said it found new cases of product data fabrication, bringing the total number of affected vehicles to 1,551 from the previously reported 903.

In a news conference on Tuesday, Yasuyuki Yoshinaga said he would step down as Subaru’s president and also as chief executive officer to take responsibility for the inspection scandal.

The broader Topix added 0.1 percent to 1,776.87. (Editing by Jacqueline Wong)

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