Japan’s Nikkei ends higher as investors pick beaten down shares after retreat

TOKYO, Jan 19 (Reuters) – Japanese shares closed higher on Tuesday after declining for two consecutive sessions, as investors scooped up beaten-down stocks, with automakers and semiconductor-related plays leading the rebound.

The Nikkei 225 Index ended 1.39% higher at 28,633.46, while the broader Topix inched up 0.56% to 1,855.84.

“Investors are buying back shares which were sold out of concerns for overheat yesterday,” said Hideyuki Suzuki, general manager at investment research for SBI Securities Suzuki.

“Today’s (Tuesday) rise represents the fundamental strength of the Japanese market. It is moving on its own without being influenced by the U.S. market, which was closed yesterday.”

Sentiment was also buoyed after Chinese data released on Monday raised hopes that strength in the world’s second-largest economy would underpin growth in the region.

China’s economic recovery beat analysts’ expectations in the fourth quarter, expanding 6.5% from a year earlier, data from the National Bureau of Statistics showed.

In Japan, chip-related shares advanced, with Rohm Co jumping 4.51% after Nomura Securities raised its target price.

TDK rose 2.76%, Tokyo Electron gained 2.11%, and Advantest climbed 4.22%.

Automakers also advanced, with Mazda Motor jumping 5.5%, Nissan Motor rising 3.91% and Suzuki Motor gaining 3.89%. Toyota edged up 0.94% and Honda Motor added 1.69%.

Fast Retailing rose 3.06% after a report said that the operator of Uniqlo clothing chain would add a payment function to its smartphone app.

The stocks that gained the most among the top 30 core Topix names were SoftBank Group Corp, which rose 3%, followed by Hitachi Ltd, rising 2.6%.

The underperformers among the Topix 30 were Hoya Corp , which fell 1.94%, followed by Seven & i Holdings Co Ltd losing 1.60%. (Editing by Uttaresh.V)

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »