Japan’s Nikkei rises after 4 days of losses as chip-related shares jump

TOKYO: Japan’s Nikkei share average gained slightly on Thursday after four straight sessions of losses, as chip-related stocks tracked their U.S. peers higher.

The Nikkei rose 0.28% to 44,675.96 by the midday break after shedding 2.6% in the last four sessions, with some analysts expecting the recovery to be short-lived given the fall in the broader Topix.

Earlier in the day, the Nikkei rose as much as 1.3%. The Topix fell 0.72% to 3,072.32.

“Retail investors refrain from buying stocks as they are waiting for the shares to fall further,” said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.

“The Nikkei has risen too high. The decline in the Topix index is a real reflection of the market sentiment.”

The Nikkei, which is heavily weighted by chip-related shares, hit a record high last month, helped by gains in chip-related shares. It has risen 12% so far this year, heading for a third straight annual gain.

Chip-making equipment maker Tokyo Electron jumped 5.7% on Thursday after the U.S. Philadelphia chip index notched a record high overnight.

Chip-testing equipment maker Advantest rose 2.11% and artificial intelligence technology investor SoftBank Group jumped 5.13%.

“Investors who bet on U.S. technology stocks bought Japanese tech shares today,” Kamada said.

Bank shares fell, with Mitsubishi UFJ Financial Group down 1.64%. Mizuho Financial Group and Sumitomo Mitsui Financial Group lost 1.25% and 0.99%, respectively.

Auto shares fell, with Toyota Motor and Honda Motor losing 0.99% and 1.59%, respectively.

Of the more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 74% fell, 22% rose and 2% traded flat.