Japan's Nikkei ends higher as chip shares track Wall Street gains
Nikkei share average closed higher on Tuesday, tracking Wall Street's firm finish overnight, as investors scooped up stocks after sharp losses in the previous session, with chip-related shares leading the gains. The Nikkei index rose 0.56% to end at 32,238.89, regaining some of its 1.27% losses in the previous day. The broader Topix ended 0.41% higher at 2,290.31.
«The market rebounded from sharper-than-expected losses in the previous session where there was no strong force to buy stocks in dips,» said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute. «Today, the Nikkei recovered some of its losses as investors bought cheap stocks. Next week, investors who are off for holiday this week will be back and they could become a strong buying force.» Investors' response to stronger-than-expected economic growth data was limited as the outcome was already expected, said Suzuki.
Japan's economy expanded for a third straight quarter in April-June as brisk auto exports and tourist arrivals helped offset the drag from a slowing post-COVID recovery in consumption. Meanwhile, the S&P 500 and the Nasdaq closed higher on Monday as shares of chipmaker Nvidia surged following a bullish note from Morgan Stanley, leading gains in other megacap growth stocks. In Japan, chip-making equipment maker Tokyo Electron rose 1.68%, giving the biggest boost to the Nikkei.
Chip-testing making equipment maker Advantest gained 1.91%. Sensor maker TDK rose 2.47%. Japan Post Holdings jumped 4.89% after the conglomerate of banking and insurance businesses announced to buy back up to 8.4% of its own shares worth 300 billion yen.
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