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Japan Shares Advance as Investors Look for Bargains

TOKYO, Jan 19 (Reuters) - Japanese shares rose on Tuesday after two consecutive sessions of falls as investors scooped up beaten down stocks, with automakers and semiconductor-related plays leading the rebound.

The Nikkei 225 Index climbed 1.23% to 28,590.98 by 0150 GMT, while the broader Topix edged up 0.48% to 1,854.36.

“Investors are buying back shares which were sold out of concerns for overheat yesterday,” said Hideyuki Suzuki, general manager at investment research for SBI Securities Suzuki.

“Today’s rise represents the fundamental strength of the Japanese market. It is moving on its own without being influenced by the U.S. market, which was closed yesterday.”

Sentiment was also buoyed as China data released on Monday led investors wager that strength in the world’s second-largest economy would help underpin growth in the region.

China’s economic recovery beat analyst expectations in the fourth quarter, expanding 6.5% from a year earlier, data from the National Bureau of Statistics showed.

Chip-related shares gained, with Rohm Co jumping 4.16% after Nomura Securities raised its target price.

TDK rose 1.88%, Tokyo Electron gained 1.87% and Nidec edged up 0.28%.

Automakers also advanced, with Nissan Motor rising 4.07% and Mazda Motor climbing 5.09%. Toyota edged up 0.89% and Honda Motor added 1.47%.

Fast Retailing rose 3.15% after a report that the operator of Uniqlo clothing chain would add a payment function to its smartphone app.

The underperformers among the Topix 30 were Hoya Corp , which fell 1.97%, and Seven & i Holdings Co Ltd , losing 0.61%.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)

Source: Reuters


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