TOKYO: Japan’s Nikkei share average gained on Wednesday, as concerns about the US economy receded, prompting investors to continue buying cheap stocks after a heavy sell-off earlier this week.
The Nikkei rose 0.6% to end the day at 40,794.86. The broader Topix jumped 1% to 2,966.57. “Investors bought stocks because the gains of the Nikkei in the previous session were not enough to recoup declines on Monday,” said Naoki Fujiwara, a senior fund manager at Shinkin Asset Management.
Japanese shares slid the most in two months on Monday as concerns mounted over the US economy and trade, while speculation grew over a potential upheaval in domestic politics.
“It is just the declines of heavyweight stocks that are dragging the index today,” said Fujiwara. Tokyo Electron slumped 3.8% to weigh the most on the Nikkei. Mizuho Securities analysts downgraded the rating of the chip-making equipment maker to “Neutral” from “Buy”. Mitsui Fudosan leapt 5.9% after the property developer’s quarterly net profit nearly doubled from a year ago.
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