Japan's Nikkei rises as yen weakens, chip-related shares advance

Market Performance - The Nikkei rose 0.85% to close at 53,333.54, while the broader Topix ended 0.31% higher at 3,563.59, driven by technology stocks [1][7] - Advantest jumped 5.85% and Tokyo Electron rose 2.53%, contributing to the overall market gains [3][7] - Tokyo Electric Power fell 7.925%, becoming the worst percentage loser on the Nikkei after announcing plans to cut about 3.1 trillion yen ($20 billion) in costs over 10 years [7] Currency and Economic Context - The yen had spiked against the U.S. dollar, reaching a more than two-month high, but weakened towards the end of the session, which supported the market [1][2] - Speculation grew over coordinated currency intervention by U.S. authorities following remarks from Japan's prime minister and a leading currency diplomat [2][7] - The current level of the yen is viewed as negative for exporters but positive for the election campaign, as stated by Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management [6][7] Political Developments - Japanese political parties began an election campaign on Tuesday after Prime Minister Sanae Takaichi called for a national election on February 8 [6][7] - A stronger yen is seen as positive for Takaichi, who supports loose monetary policy, while a weaker yen raises import costs and drives inflation, putting pressure on the central bank [6][7]