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Japanese Shares Jump after Sharp Falls; Cyclical Stocks Gain

TOKYO, April 22 (Reuters) - Japanese shares jumped on Thursday as investors scooped up cyclical and chip-related shares after they fell sharply in the previous two sessions, with sentiment aided by an upbeat finish on Wall Street overnight.

The Nikkei share average jumped 1.9% to 29,050.73 by 0152 GMT, while the broader Topix rose 1.59% to 1,918.13.

Concerns about an economic slowdown amid preparations of a third state of a virus-led emergency eroded about 4% from the Nikkei and 3.5% from the Topix index in the past 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 jumping 4.24%, Advantest rising 3% and Shin-Etsu Chemical climbing 2.7%.

Nidec, known for making precision motors used in computer hard drives, gained 3.89% ahead of its earnings announcement on Thursday. The company is one of the first major manufacturers to disclose outlook in the earnings seasons.

Shipping firms were the top percentage gainers on the Nikkei, with Kawasaki Kisen rising 5.6%, followed by Mitsui OSK Lines gaining 4.83%.

The largest percentage loser was Teijin, down 0.95%, followed by Mitsubishi Logistics losing 0.63% and Eneos Holdings down 0.53 %.

There were 200 advancers on the Nikkei index against 22 decliners.

Reporting by Junko Fujita; editing by Uttaresh.V

Source: Reuters

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