Copyright brecorder
TOKYO: Japan’s Nikkei share average rose on Thursday, rebounding from steep losses in the previous session, as a strong overnight finish on Wall Street revived risk appetite and boosted investor sentiment. As of 0130 GMT, the Nikkei was up 1.1% at 50,757.36. The index rose as much as 2% earlier in the session. The broader Topix rose 1% to 3,300.64. US stocks rebounded on Wednesday as jitters over inflated tech stock valuations abated and upbeat earnings and better-than-expected economic data fuelled investors’ risk appetite. In Japan, chip-testing equipment maker Advantest rose 3% and chip-testing equipment maker Tokyo Electron edged up 0.12%. Technology investor SoftBank Group was up 0.77%. Together, the three companies accounted for nearly 80% of the Nikkei’s 2.5% decline on Wednesday. “The Nikkei’s move has been heavily influenced by only a few stocks, such as SoftBank Group and Advantest. We need more stocks that will lead the Nikkei’s further gains,“ said Takamasa Ikeda, senior portfolio manager at GCI Asset Management. In October, the Nikkei crossed the crucial 50,000 mark for the first time and climbed 16.64%, its biggest monthly gain in 35 years, while the Topix rose 6.2%. “This huge gap in the gains of the two main indexes is unprecedented, and shows how much the Nikkei relied on the small number of stocks to rise. It is a sign of vulnerability of the Japanese stock market,” Ikeda said. In the middle of earnings season in Japan, investors scooped up stocks with strong outlooks. Konica Minolta jumped 16% to become the top percentage gainer on the Nikkei, after the camera maker raised its annual net profit forecast to 27 billion yen ($179 million), compared with a 47.4 billion yen net loss a year ago. Retailer Aeon fell 2.42% to weigh on the Nikkei the most. Furniture and home goods retailer Nitori Holdings lost 1.95%.
