TOKYO: Japan’s Nikkei share average rebounded from a five-day losing streak on Tuesday as investors scooped up stocks that had fallen too much, although uncertainties about the U.S. economic outlook capped gains.
The Nikkei was up 0.08% at 36,244.22 points by the midday break, after erasing most of its 0.9% gain earlier in the session.
The broader Topix rose 0.34% to 2,588.52.
“Investors scooped up stocks after sell-offs in the past several days but the market could not be completely bullish as there are many uncertainties, such as the outlook of the U.S. economy,” said Fumio Matsumoto, chief strategist at Okasan Securities.
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“The market view on the U.S. economy, as well as the foreign currency markets, are divided,” Matsumoto said.
Technology stocks led the Nikkei’s gains, with chip-making equipment maker Tokyo Electron rising 2.88% to become the biggest boost for the index.
Technology investor SoftBank Group rose 0.95% and chip-testing equipment maker Advantest climbed 0.39%.
Tech leads Japan’s Nikkei lower
“We cannot say the market has regained momentum until the Nikkei rises to around the 39,000 level,” said Shigetoshi Kamada, general manager of the research department at Tachibana Securities.
Drug maker Daiichi Sankyo tanked 8.56% after trials showed an experimental drug, which the drug maker has jointly developed with UK-based AstraZeneca, did not significantly improve overall survival in lung cancer patients in a late-stage trial.
Joban Kosan surged 8% to 1,663 yen after the operator of the Hawaiian-themed resort complex in Fukushima said an investment fund Fortress Investment Group would buy the firm for about 14 billion yen ($98 million) in a public tender offer at 1,650 yen.
Source: Brecorder
