Japanese shares jump on bargain hunting, chip sector shines

Mitsubishi Materials

21/12/2021 03:07

By Junko Fujita
    TOKYO, Dec 21 (Reuters) - Japanese equities jumped on
Tuesday after two sessions of decline, with chip-related Tokyo
Electron  8035.T  and Advantest  6857.T  leading the pack, as
investors snapped up stocks that were dragged by concerns of the
Omicron COVID-19 variant.
    The Nikkei share average  .N225  jumped 2% to 28,500.34 by
0225 GMT, while the broader Topix  .TOPX  advanced 1.7% to
1,974.20.
    "The Japanese market fell too much in the previous sessions
because of an extreme caution for impact of the Omicron, which
is affecting the U.S. and Europe," said Kazuharu Konishi, head
of equities at Mitsubishi UFJ Kokusai Asset Management.
    "But Japan so far has not seen many infections. On top of
that, Japanese shares are relatively cheap." 
     The Nikkei has lost almost 4% in the past two sessions as
the Omicron continued to stoke worries over an economic slowdown
worldwide, while hawkish moves by global central banks curbed 
risk appetite.    
     Heavyweight chip-related shares rose after Micron
Technology  MU.O  beat market expectations by delivering
stronger quarterly results.  urn:newsml:reuters.com:*:nL4N2T53U4
     Tokyo Electron  8035.T  gained 3.74%, Advantest  6857.T 
rose 4.31% and Shin-Etsu Chemical  4063.T  rose 2.11%. 
    Drugmakers  .IPHAM.T  rose 1.99%, with Shionogi & Co
 4507.T  jumping 6.82% after a local media report that
preliminary studies suggested that its COVID-19 drug could work
against Omicron infections.
    Shionogi's peer, Daiichi Sankyo  4568.T , rose 3.57%, while
Astellas Pharma  4503.T  slipped 0.22%. 
    Sporting goods maker Asics  7936.T  jumped 4.53% after its
U.S. peer Nike  NKE.N  reported robust earnings.  urn:newsml:reuters.com:*:nL4N2T53V2
    There were 215 advancers on the Nikkei index against seven
decliners.  
    Z Holdings  4689.T , down 2.26%, lost the most on the
Nikkei, followed by Mitsubishi Materials  5711.T  losing 1.08%
and Shinsei Bank  8303.T  falling 0.93 %.

 (Editing by Devika Syamnath)
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Messaging:junko.fujita.reuters.com@reuters.net;))