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Japanese shares rise as chip sector tracks Nasdaq higher

TOKYO, March 23 (Reuters) - Japanese equities advanced on Tuesday as investors bought chip-related shares following a tech rebound on Wall Street overnight, while automakers rebounded from sharp losses in the previous session.

The Nikkei share average added 0.61% to 29,350.93 by 0144 GMT, while the broader Topix gained 0.39% to 1,997.94.

“The Japanese market does not have an independency. It’s been obvious these days. What’s happened overnight in the U.S. is happening in Japan a day after,” said Koichi Kurose, chief strategist at Resona Asset Management.

Chip-related shares advanced, tracking the tech-heavy Nasdaq which outpaced the S&P 500 and the Dow overnight as 10-year U.S. Treasury yields eased from 14-month highs.

Tokyo Electron and TDK Corp added 3.28% and 1.84%, respectively, while Shin-Etsu Chemical gained 1.37% and Advantest advanced 1.21%. Nikon Corp rose 3.15%.

Japan Exchange Group jumped 3.55% after the operator of the Tokyo Stock Exchange raised its full-year net profit forecast to 51.5 billion yen ($473.17 million) from 45.5 billion yen.

Automakers rebounded from Monday’s losses, which were driven by concerns around potential chip shortages due to a fire at a plant of semiconductor supplier Renesas Electronics. Toyota Motor rose 1.24%, while Suzuki Motor and Nissan Motor jumped 2.83%. Renesas gained 3.08%.

Transport shares declined, with Kawasaki Kisen Kaisha down 5.75% and ANA Holdings Inc losing 3.76%.

Seven & i Holdings Co Ltd was up 2.76% and Daiichi Sankyo, which gained 2.11%, led gains among the top 30 core Topix names.

Mitsubishi UFJ Financial Group, down 2.02%, and Sumitomo Mitsui Financial Group Inc, losing 1.44%, were the worst performers among the Topix 30.

There were 125 advancers on the Nikkei index against 95 decliners.

$1 = 108.8400 yen

Reporting by Junko Fujita; Editing by Devika Syamnath

Source: Reuters

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