Japan's Topix rises on cyclicals boost, weak chip shares cap gains
TOKYO, March 25 (Reuters) - Japan's Topix was set to snap a three-day losing streak on Thursday, as investors scooped up beaten-down cyclical stocks, although gains were capped by chip-related shares that tracked the Nasdaq lower.
The broader Topix .TOPX rose 0.91% to 1,946.16 by 0150 GMT, while the Nikkei 225 Index .N225 gained 0.33% to 28,499.42.
"There were a lot of pessimistic news that prompted investors to sell cyclical shares (yesterday). They are buying back those today," Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
Banking stocks led the gains on Topix, with Mitsubishi UFJ Financial Group 8306.T rising 2.13% and Sumitomo Mitsui Financial Group 8316.T jumping 2.53%. Mizuho Financial Group 8411.T gained 2.41%>
Toyota Motor 7203.T edged up 0.43% after the automaker revived a partnership with Isuzu Motor 7202.T to boost their competitive edge in connected, commercial vehicles, with Toyota's truck unit Hino Motors Ltd 7205.T joining in the pact. fell 1.01%, while Hino slumped 6.59% following a surge on the news on Wednesday, making it the biggest loser on the Nikkei index.
Chip-related shares fell, with Advantest 6857.T losing 2.78% and Tokyo Electron 8035.T losing 2.76%. They tracked a weak show by the Nasdaq overnight. .N
Tech investor SoftBank Group 9984.T fell 3.14%.
All but three of the 33 sector sub-indexes on the Tokyo exchange traded higher, with highly cyclical material sectors being among the top gainers on the main bourse.
The stocks that gained the most among the top 30 core Topix names were Fanuc Corp 6954.T up 2.88%, followed by Hitachi 6501.T , rising 2.62%.
The largest percentage gainers in the Nikkei index were Mitsui Mining and Smelting Co Ltd 5706.T up 4.99%, followed by Konica Minolta 4902.T , gaining 4.45 % and Aozora Bank 8304.T up 4.35%.
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