Japan's Nikkei rebounds from one-week low despite chip drag

Isuzu Motors

22/11/2023 06:46

(Updates with closing prices)
    By Kevin Buckland
       TOKYO, Nov 22 (Reuters) - Japan's Nikkei share average
gained on Wednesday, rebounding from early declines as a weaker
yen buoyed exporter shares, even as chip stocks dragged.
    The Nikkei  .N225  closed up 0.29% at 33,451.83. Of its 225
components, 171 stocks advanced, 52 fell and two traded flat.
    The level puts it about halfway between the day's low point
at 33,182.99, a one-week trough, and Monday's fresh post-1990
peak at 33,853.46.
    The broader Topix  .TOPX  added 0.44%.
    "Japanese stocks have been stronger relative to others
recently (and) a lot of people still want to buy Japanese
stocks," said Naka Matsuzawa, a strategist at Nomura Securities.
    At the same time, "it's kind of hard to draw a scenario for
higher stock markets from here, because the market has already
priced in quite aggressive rate cuts from the Fed," he said.
    Traders place about 29% odds on a first Federal Reserve rate
cut by March, according to the CME's Fedwatch tool.
    The session's bounce may have been amplified by technical
factors, with Japanese markets closed for a national holiday on
Thursday.
    Online company Cyberagent  4751.T  led Nikkei gainers with a
4.95% jump. Uniqlo owner Fast Retailing  9983.T  rose 1.26%,
making it the biggest points gainer due to its heavy weighting.
    Automakers were overall firm, with Subaru  7270.T  rallying
2.29% and truckmaker Isuzu  7202.T  climbing 1.92%.
    Shippers  .ISHIP.T  led advances among the Tokyo Stock
Exchange's 33 industry groups, followed by paper and pulp
 .IPAPR.T , gaining 1.8% and 1.34%, respectively.
    However, chip shares were heavy amid weakness in Nvidia's
shares  NVDA.O . 
    Chip-testing equipment maker Advantest  6857.T , a Nvidia
supplier, dropped 4.33% to be the biggest points decliner.

 (Reporting by Kevin Buckland; Editing by Rashmi Aich and
Mrigank Dhaniwala)
 ((Kevin.Buckland@thomsonreuters.com;))