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* The actions related to the chips are positive
* Nikkei up 1.2% for the week
By Ayai Tomisawa
TOKYO, June 7 (Reuters) – Japan's Nikkei advanced on Friday morning, monitoring US gains as Washington said it was delaying tariffs on Mexican imports, easing worries about world trade.
The average Nikkei stock rose 0.5% to 20,878.90 at the midday break. For the week, the index has gained 1.2% so far.
Investor confidence has eased slightly after Mexican and US authorities held a second day of trade and migration talks Thursday, as President Donald Trump could delay the imposition of customs duties scheduled on Monday.
Analysts said that, if the sentiment was positive, the trade could be meager, with most investors remaining on the sidelines of the US employment report that should support the Fed's expectations for a change. rate cuts if the US economy slows down.
"The market has almost taken into account the Fed's hopes for rate cuts. On the commercial side, we still do not know the outcome of the US-Mexico tariff agreement, but positive reports reinforce the atmosphere, "said Isao Kubo, equity strategist at Nissay Asset Management.
Cyclical stocks, such as those in the chip sectors, were in demand, with Advantest Corp up 4.7% and Tokyo Electron up 2.8%. Other exporters also advanced, with TDK Corp up 2.3% and Fanuc Corp up 1.5%.
Hitachi High-Technologies was not confronted with a plethora of purchase orders after Nikkei announced that the parent company Hitachi Ltd was considering turning the company into a wholly-owned subsidiary. Purchase orders indicate a leap of 15%, reaching a maximum daily limit of 5,450 yen.
Hitachi Ltd said it was considering various options to increase the value of the company, but nothing has been decided yet.
The broader Topix rose 0.4% to 1,530.42.
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