TOKYO: Japan’s Nikkei share average rebounded from the previous session’s sharp decline on Wednesday, as chip-related stocks rose, while declines of bank stocks weighed on the Topix.
The Nikkei rose 0.61% to 68,193.13 by the midday break, after ending 1.8% lower on Tuesday.
The broader Topix inched 0.05% lower to 4,108.8.
“Technology stocks bounced back in the current session, but their gains were limited ahead of local firms’ earnings reports and the US midterm congressional elections,” said Shota Sando, equity analyst at Tokai Tokyo Intelligence Laboratory.
Chip-related Advantest and Tokyo Electron rose 1.19% and 0.78%, respectively. Technology investor SoftBank Group gained 2.15%.
These stocks rose even as the US PHLX chip index fell overnight.
The index, a gauge for the Nikkei’s move, fell for a fifth straight session.
Fibre optic cable maker Fujikura rose 2.98%.
Taiyo Yuden, a leading maker of multi-layer ceramic capacitors used to regulate power in AI servers, jumped 7.74% to become the top percentage gainer on the Nikkei.
Bank shares slipped, weighing on the Topix the most.
Mitsubishi UFJ Financial Group fell 1.83%.
Mizuho Financial Group and Sumitomo Mitsui Financial Group slipped 2.48% and 1.85%, respectively. Overnight, US major investment bank stocks fell, with Citigroup dipping 5.6% and Goldman Sachs losing 0.2% after both banks topped profit estimates.
Out of more than 1,500 stocks trading on the Tokyo Stock Exchange’s prime market, 58% fell, 38% rose and 2% traded flat.