Japan's Nikkei ends higher as chip shares track Wall Street gains

Ebara

15/08/2023 07:28

TOKYO, Aug 15 (Reuters) - Japan's Nikkei share average
closed higher on Tuesday, tracking Wall Street's firm finish
overnight, as investors scooped up stocks after sharp losses in
the previous session, with chip-related shares leading the
gains.
    The Nikkei index  .N225  rose 0.56% to end at 32,238.89, 
regaining some of its 1.27% losses in the previous day. The
broader Topix  .TOPX  ended 0.41% higher at 2,290.31.
     "The market rebounded from sharper-than-expected losses in
the previous session where there was no strong force to buy
stocks in dips," said Seiichi Suzuki, chief equity market
analyst at Tokai Tokyo Research Institute.
    "Today, the Nikkei recovered some of its losses as investors
bought cheap stocks. Next week, investors who are off for
holiday this week will be back and they could become a strong
buying force." 
    Investors' response to stronger-than-expected economic
growth data was limited as the outcome was already expected,
said Suzuki. 
    Japan's economy expanded for a third straight quarter in
April-June as brisk auto exports and tourist arrivals helped
offset the drag from a slowing post-COVID recovery in
consumption.
    Meanwhile, the S&P 500 and the Nasdaq closed higher on
Monday as shares of chipmaker Nvidia surged following a bullish
note from Morgan Stanley, leading gains in other megacap growth
stocks.  .N 
    In Japan, chip-making equipment maker Tokyo Electron
 8035.T  rose 1.68%, giving the biggest boost to the Nikkei.
Chip-testing making equipment maker Advantest  6857.T  gained
1.91%.
    Sensor maker TDK  6762.T  rose 2.47%.
    Japan Post Holdings  6178.T  jumped 4.89% after the
conglomerate of banking and insurance businesses announced to
buy back up to 8.4% of its own shares worth 300 billion yen.
    Dentsu Group  4324.T  tanked 7.65% to become the worst
performer on the Nikkei after the advertising firm cut its
annual net profit forecast. 
    
    


 (Reporting by Junko Fujita; Editing by Sohini Goswami)
 ((junko.fujita@thomsonreuters.com;))