Japan's Nikkei tracks Wall Street higher; chip shares lead gains

Ebara

15/08/2023 04:03

TOKYO, Aug 15 (Reuters) - Japan's Nikkei share average
rose on Tuesday to track the overnight firm finish of Wall
Street as investors scooped up stocks after sharp losses in the
previous session, with chip-related shares leading the gains.
    The Nikkei index  .N225  rose 0.8% to 32,315.61 by the
midday break, regaining some of its 1.27% losses in the previous
day. The broader Topix  .TOPX  rose 0.58% to 2,294.12.
     "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." 
    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 2.29% and chip-testing making equipment maker Advantest
 6857.T  jumped 2.76%.
    Sensor maker TDK  6762.T  rose 2.55%.
    Japan Post Holdings  6178.T  jumped 3.82% after the
conglomerate of banks and insurance businesses announced to buy
back up to 8.4% of its own shares worth 300 billion yen.
    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.
    Dentsu Group  4324.T  tanked 7.28% 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;))