TOKYO: Japan’s Nikkei share gauge rebounded on Wednesday from its steepest drop since April, as investors piled back into tech stocks that were pummelled on concerns over China-US trade friction.
The Nikkei 225 Index rallied 1.8 percent at 47,672.67, recovering part of its 2.6 percent slide in the previous session as Japanese markets returned from a holiday. The broader Topix rose 1.6 percent.
SoftBank Group, a major investor in chips and artificial intelligence, rose 5.1 percent, recovering from a 6 percent slide on Tuesday. Chip-testing equipment maker Advantest rallied 2.2 percent after a two-day skid.
Investor sentiment has been dented by an escalation of tensions between the United States and China, as well as political haggling to decide Japan’s next prime minister.
“We’re seeing a corrective rebound in semiconductor-related stocks that fell sharply yesterday,” said Fumika Shimizu, a strategist at Nomura Securities.
“Uncertainty surrounding Japan’s political situation has persisted since last Friday,” Shimizu said. “Achieving clarity on that front would likely be the driver needed for a genuine return to an upward trend.”
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