TOKYO: Japan’s Nikkei share average rebounded on Wednesday, lifted by chip-related stocks and airlines, although losses in energy shares and worries about a slowing global economy capped gains.
The Nikkei share average closed up 0.54% at 26,478.77. It slid 1.77% in the previous session and marked its worst day in a month.
Of the benchmark’s 225 component stocks, 147 gained, 69 fell and nine were flat.
The broader Topix rose 0.29% to 1,888.85, clawing back some of Tuesday’s 1.64% decline.
However, worries lingered about the global growth outlook amid heightened uncertainty over Europe’s energy crisis and China’s renewed struggle to control COVID-19 outbreaks with its draconian zero-COVID policies.
The market’s immediate focus is on US consumer price data due later Wednesday, which will show how effective Federal Reserve tightening has been so far and potentially how much more may be needed.
“There’s a feeling that the Nikkei has gotten cheap, but with so much uncertainty about the global economic outlook, it is very difficult to buy stocks aggressively,” said a market participant at a domestic securities firm.
Worries about demand sent crude oil sliding on Tuesday, making energy the Nikkei’s worst performing sector, with a 0.71% decline.
Petrochemical companies Inpex JGC Holdings were among the biggest decliners on the benchmark index, dropping 1.66% and 1.46%, respectively.
At the other end, startup investor SoftBank Group jumped 2.4%, adding an index-leading 26 points to the benchmark, as sources said it was in talks Abu Dhabi’s sovereign wealth fund for the sale of Fortress Investment Group.
Uniqlo-owner Fast Retailing added 24 points with its 1.01% advance, followed by chipmaking-equipment maker Tokyo Electron, which added 20 points by rising 1.37%.
Strong gains for American Airlines on a revised forecast for second-quarter revenue put wind under Japanese peers ANA Holdings and Japan Airlines, which rallied 1.08% and 1.43%, respectively.
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