Japanese shares jump after sharp falls; chip-related, cyclical stocks gain

Mitsubishi Logistics

22/04/2021 03:51

TOKYO, April 22 (Reuters) - Japanese shares jumped on
Thursday as investors scooped up cyclical and chip-related
shares after they fell sharply in the previous two sessions,
with sentiment aided by an upbeat finish on Wall Street
overnight.
    The Nikkei share average  .N225  jumped 1.9% to 29,050.73 by
0152 GMT, while the broader Topix  .TOPX  rose 1.59% to
1,918.13.
    Concerns about an economic slowdown amid preparations of a
third state of a virus-led emergency eroded about 4% from the
Nikkei and 3.5% from the Topix index in the past two days.
    "Investors are buying stocks as prices have become
reasonable after declines in the past two days," said Masahiro
Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset
Management.
    "An introduction of a state of emergency makes investors
wary but the number of new infections could fall. That might be
factored into today's market." 
    Chip-related shares advanced, with Tokyo Electron  8035.T 
jumping 4.24%, Advantest  6857.T  rising 3% and Shin-Etsu
Chemical  4063.T  climbing 2.7%.
    Nidec  6594.T , known for making precision motors used in
computer hard drives, gained 3.89% ahead of its earnings
announcement on Thursday. The company is one of the first major
manufacturers to disclose outlook in the earnings seasons.
    Shipping firms were the top percentage gainers on the
Nikkei, with Kawasaki Kisen  9107.T  rising 5.6%, followed by
Mitsui OSK Lines  9104.T  gaining 4.83%.
    The largest percentage loser was Teijin  3401.T , down
0.95%, followed by Mitsubishi Logistics  9301.T  losing 0.63%
and Eneos Holdings  5020.T  down 0.53 %.
    There were 200 advancers on the Nikkei index against 22
decliners. 
    

 (Reporting by Junko Fujita; editing by Uttaresh.V)
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