TOKYO: Japan’s Nikkei share average rose on Monday, recouping some of the previous session’s sharp losses, although declines in chip-related stocks capped gains.
The Nikkei closed up 1% at 37,438.61, after declining briefly earlier in the session. Of the index’s 225 components, 196 stocks rose and 28 fell, with one flat.
“The index extended its gains toward the close as investors bought back stocks that fell too much,” said Shigetoshi Kamada, general manager of the research department at Tachibana Securities.
On Friday, the index fell 2.66% in its worst session in more than a year and a half, amid worries over an escalation in the Middle East conflict.
“Overall, the market was firm except for the chip-related stocks, which tracked their U.S. peers’ declines at the end of last week,” said Shuji Hosoi, a senior strategist at Daiwa Securities.
Tokyo’s Nikkei drops over 1,000 points, most in 3 years
U.S. chip-related stocks tumbled on Friday, with the Philadelphia Semiconductor Index falling 4.12%. The index recorded its biggest weekly percentage decline in nearly two years with a plunge of 9.23%.
Chip-making equipment maker Tokyo Electron closed 3.22% lower, although it recouped some early losses.
Chip-testing equipment maker Advantest fell 3.92% and chipmaking device supplier Disco slipped 4.38%.
Chip-maker Renesas Electronics fell 3.3%.
Nissan Motor fell 1.96% after the automaker slashed its annual operating profit estimate by 14.5% on Friday, citing lower-than-expected vehicle sales and other factors.
On the other hand, Uniqlo-brand owner Fast Retailing rose 2.3% to become the biggest support for the Nikkei. Robot maker Fanuc gained 3.77%.
The broader Topix closed 1.38% higher at 2,662.46.
Some 88% of the more than 1,600 stocks listed on the Tokyo Stock Exchange rose.
All but two of the Tokyo Stock Exchange’s 33 industry sub-indexes rose. Energy explorers and refiners slipped 0.59% and 0.06%, respectively.
Comments