TOKYO: Japanese shares rose on Wednesday, as an overnight Wall Street rally improved risk appetite, prompting investors to scoop up stocks that were sold off last month as well as those likely to benefit from the economic reopening.
By 0206 GMT, the Nikkei share average gained 1.7% to 27,547.21, while the broader Topix advanced 1.95% to 1,933.07.
All three Wall Street benchmarks advanced overnight, as investors digested strong earnings from big-name US companies against mixed economic data and inflation worries.
"Investors realised that they were too risk sensistive and bought back stocks that were oversold," said Ikuo Mitsui, fund manager at Aizawa Securities.
Japanese shares rise as tech stocks track Wall Street higher
"Also, investors have become more responsive to positive news so they bought stocks with robust earnings. But the market has risen to the level where investors may turn cautions and start selling."
Keyence jumped 6.01% after electronic application equipment posted a record operating profit for nine months through December.
Other technology stocks gained, with chip-relate Tokyo Electron Shin-Etsu Chemical rose 2.28% and 4.42%, respectively.
Airlines rose 4.07%, leading gains among the exchange's 33 industry subindexes. ANA Holdings rose 5.05%, after the airliner surprised with a small third-quarter operating profit.
Isetan Mitsukoshi Holdings rose as department store operator raised its annual net profit outlook.
Medical equipment maker Konica Minolta fell 2.94% and was the worst performer on Nikkei, followed by shipping firm Kawasaki Kisen Kaisha, which fell 2.19%.
There were 200 advancers on the Nikkei index against 24 decliners.
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