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Japanese Shares Gain on Upbeat Profit Forecasts, Tech Boost

TOKYO, Feb 1 (Reuters) - Japanese shares rose on Monday, after two straight sessions of declines, boosted by upbeat earnings forecasts and gains in beaten-down chipmakers and other technology companies.

Nikkei share average gained 1.03% at 27,948.30, as of 0142 GMT, and the broader Topix rose 0.9% to 1,825.24.

“Investors are buying shares that were sold more than they should have last week,” said Norihiro Fujito, chief investment strategist, Mitsubishi UFJ Morgan Stanley Securities. “Last week’s sell-downs were driven by sentimental reasons.”

Japanese shares had tumbled for two days as investors grew nervous about further market turbulences in the U.S. caused by the headline-grabbing battle between retail investors and funds that specialise in shorting stocks.

NEC jumped 10%, making it the biggest gainer in the Nikkei 225 index, after the computer network services company reported a 5.7% rise in its nine-month operating profit.

Toto surged 11% as the toilet maker raised its profit outlook.

However, some stocks declined despite the upbeat forecasts as investors had already priced in the revisions. Electronic component makers Murata fell 3.17% and TDK declined 6.28%, making it the biggest loser in the Nikkei 225 index.

Panasonic edged down 0.3% after local media reported the home electric appliances maker would cease production of its own solar panels.

Chip-related shares gained, with Advantest rising 1.69% and Tokyo Electron gaining 1.66%.

The stocks that gained the most among the top 30 core Topix were game maker Nintendo, up 3.22%, followed by conglomerate SoftBank Group’s 2.95% gain.

(Reporting by Junko Fujita; Editing by Amy Caren Daniel )

Source: Reuters


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