Nikkei rises more than 1pc as Wall Street rebound restores risk appetite

TOKYO: Japan’s Nikkei share average rose more than 1 percent on Thursday, rebounding from the last session’s steep losses, as a strong overnight finish on Wall Street revived risk appetite.

The Nikkei rose 1.34 percent to close at 50,883.68 and the broader Topix gained 1.38 percent to 3,313.45.

Overnight, US stocks rebounded as jitters over inflated tech stock valuations abated and upbeat earnings and better-than-expected economic data fuelled risk appetite.

Chip-related Advantest rose 3.15 percent and technology investor SoftBank Group climbed 2.92 percent. Chip-making equipment maker Tokyo Electron reversed gains to end 0.36 percent lower.

Together, the three companies had accounted for nearly 80 percent of the Nikkei’s 2.5 percent decline on Wednesday.

“The Nikkei’s move has been heavily influenced by only a few stocks, such as SoftBank Group and Advantest. We need more stocks that will lead the Nikkei’s further gains,” said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.