Japan’s Nikkei rises as investors pick up beaten-down tech shares
TOKYO — Japan’s Nikkei rose on Tuesday as investors bought back beaten-down technology stocks, with sentiment underpinned by gains in U.S. futures.
By 0220 GMT, the Nikkei share average was up 0.9% at 26,399.73. The broader Topix had gained 0.5% to 1,879.01.
“Investors took a fresh view on technology and growth stocks as U.S. yields stabled. They were buying back shares that fell too much.” said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
U.S. President Joe Biden considering scrapping tariffs on a range of Chinese goods to curb inflation also lifted overall sentiment, Arisawa said.
With U.S. markets closed due to a holiday on Monday, European stocks rallied 0.8% and Britain’s FTSE rose over 1%.
Back in Japan, Uniqlo owner Fast Retailing rose 2.89% to become the biggest boost for the Nikkei on Tuesday. Technology investor SoftBank Group rose 1.89% and chip making equipment maker Tokyo Electron gained 0.68%.
Mobile phone services provider KDDI climbed 1.23%, rebounding from a previous session’s loss, which was fueled by a system failure that affected almost 40 million users. nationwide.
Rakuten Group added 1.62% after the e-commerce firm said it has applied to list its online banking unit on the Tokyo Stock Exchange.
Shipping firms were weak, with Kawasaki Kisen Kaisha losing 4.13 % and Mitsui O.S.K. Lines falling 2.26% to become the top losers on the Nikkei.
Game maker Konami Group fell 2.2%. (Reporting by Junko Fujita; editing by Uttaresh.V)