TOKYO: Japan’s Nikkei share average rose on Thursday tracking Wall Street’s strong overnight finish, with heavyweight chip-related stocks leading the gains.
The Nikkei index was up 1.2% at 32,333.08 by 0225 GMT, rebounding from a one-month low on Wednesday.
The broader Topix rose 0.82% to 2,239.78. US stocks ended solidly higher overnight, led by a gain of more than 1% in the Nasdaq after a report showed inflation subsided further with consumer prices registering their smallest annual increase in more than two years.
“US market was strong overnight, which boosted overseas investor appetite for Japanese stocks,” said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
The Nikkei cut most of its gains to trade flat earlier in the session but rebounded as investors scooped up stocks.
“There are many domestic retail investors who want to buy Japanese stocks on dips,” said Kamada. Chip-related shares rose, with Advantest and Tokyo Electron rising 2.91% and 1.39%, respectively.
Silicon-wafer maker Shin-Etsu Chemical climbed 3.55%. Uniqlo brand owner Fast Retailing rose 1.81%.
Sony Group jumped 4.98%, becoming the top gainer on the Nikkei, after a report said the game and audio equipment maker would boost research and development spending at its gaming unit by about 10% to 300 billion yen ($2.2 billion) this financial year.
Japan’s Nikkei pares most gains on sell-off to lock in profits
Z Holdings, internet subsidiary of SoftBank Group, advanced 2.48%, rising for a second session after Reuters reported the two firms are mulling a US listing for its payments business PayPay.
Department store operator Takashimaya lost 1.76% and supermarket chain operator Aeon slipped 1.72%.
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