Japanese shares jump after sharp falls; chip-related, cyclical stocks gain

  • Reuters
  • Stock Market News
Japanese shares jump after sharp falls; chip-related, cyclical stocks gain
Credit: © Reuters.

TOKYO, April 22 (Reuters) - Japanese shares jumped on Thursday as investors scooped up cyclical and chip-related shares after they fell sharply in the previous two sessions, with sentiment aided by an upbeat finish on Wall Street overnight.

The Nikkei share average .N225 jumped 1.9% to 29,050.73 by 0152 GMT, while the broader Topix .TOPX rose 1.59% to 1,918.13.

Concerns about an economic slowdown amid preparations of a third state of a virus-led emergency eroded about 4% from the Nikkei and 3.5% from the Topix index in the past two days.

"Investors are buying stocks as prices have become reasonable after declines in the past two days," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.

"An introduction of a state of emergency makes investors wary but the number of new infections could fall. That might be factored into today's market."

Chip-related shares advanced, with Tokyo Electron 8035.T jumping 4.24%, Advantest 6857.T rising 3% and Shin-Etsu Chemical 4063.T climbing 2.7%.

Nidec 6594.T , known for making precision motors used in computer hard drives, gained 3.89% ahead of its earnings announcement on Thursday. The company is one of the first major manufacturers to disclose outlook in the earnings seasons.

Shipping firms were the top percentage gainers on the Nikkei, with Kawasaki Kisen 9107.T rising 5.6%, followed by Mitsui OSK Lines 9104.T gaining 4.83%.

The largest percentage loser was Teijin 3401.T , down 0.95%, followed by Mitsubishi Logistics 9301.T losing 0.63% and Eneos Holdings 5020.T down 0.53 %.

There were 200 advancers on the Nikkei index against 22 decliners.

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