TOKYO: Japanese shares closed higher on Tuesday after declining for two consecutive sessions, as investors scooped up beaten-down stocks, with automakers and semiconductor-related plays leading the rebound.
The Nikkei 225 Index ended 1.39% higher at 28,633.46, while the broader Topix inched up 0.56% to 1,855.84.
Chip-related shares advanced, with Rohm Co jumping 4.51% after Nomura Securities raised its target price.
TDK rose 2.76%, Tokyo Electron gained 2.11%, and Advantest climbed 4.22%.
Automakers also advanced, with Mazda Motor jumping 5.5%, Nissan Motor rising 3.91% and Suzuki Motor gaining 3.89%. Toyota edged up 0.94% and Honda Motor added 1.69%.
Fast Retailing rose 3.06% after a report said that the operator of Uniqlo clothing chain would add a payment function to its smartphone app. The stocks that gained the most among the top 30 core Topix names were SoftBank Group Corp, which rose 3%, followed by Hitachi Ltd, rising 2.6%.
The underperformers among the Topix 30 were Hoya Corp, which fell 1.94%, followed by Seven & i Holdings Co Ltd losing 1.60%.
“Investors are buying back shares which were sold out of concerns for overheat yesterday,” said Hideyuki Suzuki, general manager at investment research for SBI Securities Suzuki.