Japanese shares jump after two-day declines, chip stocks advance
TOKYO, April 22 (Reuters) - Japanese shares jumped on Thursday as investors scooped up chip-related and cyclical shares following a two-day decline across all sectors, with sentiment aided by an upbeat finish on Wall Street overnight.
The main indexes gained the most in more than seven weeks, with the Nikkei share average .N225 jumping 2.38% to close at 29,188.17, while the broader Topix .TOPX rose 1.82% to 1,922.50.
Concerns about an economic slowdown amid preparations of fresh measures to tackle the spread of the virus eroded about 4% from the Nikkei and 3.5% from the Topix index over the last 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 gaining 4.58%, Advantest 6857.T rising 4.2% and Shin-Etsu Chemical 4063.T climbing 3.45%.
Nidec 6594.T , known for making precision motors used in computer hard drives, gained 4.49% ahead of its earnings announcement on Thursday. The company is one of the first major manufacturers to disclose outlook in the earnings seasons.
Nidec was the top gainer among the top 30 core Topix names, followed by Keyence Corp 6861.T .
Shipping firms also advanced, with Kawasaki Kisen 9107.T rising 5.5% and Mitsui OSK Lines 9104.T gaining 3.81%.
The underperformers on the Topix 30 were Nintendo 7974.T , down 0.26%, followed by Mitsubishi UFJ Financial Group 8306.T , losing 0.16%.
There were 207 advancers on the Nikkei against 13 decliners.
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