Japan’s Nikkei rebounds from near 8-month low, tracks Wall Street higher

TOKYO: Japan’s Nikkei share average rose on Tuesday, bouncing back from a near eight-month low hit in the previous session, as overnight gains in Wall Street lifted investor sentiment.

As of 0146 GMT, the Nikkei index was up 0.7% at 35,875.79, having trimmed some of its earlier gains of more than 1%.

The Nikkei slumped on Monday as investors assessed the risk of imminent U.S. trade tariffs.

The broader Topix was up 0.94% at 2,683.53.

“The Nikkei pared its gains as the yen’s strength weighed on exporters,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

Against the dollar, the yen was last up 0.13% at 149.75 yen. A stronger yen typically weighs on exporter shares, as it reduces the value of overseas profits when repatriated to Japan.

“Chip-related stocks capped further gains of the Nikkei. There is a growing concern globally about the demand for data centres,” Yasuda said.

Chip-testing equipment maker Advantest fell 1.85% and cable maker Fujikura lost 1.37%.

Japan’s Nikkei tumbles to 6-1/2-month low as US tariff jitters weigh

Uniqlo-brand owner Fast Retailing rose 1.25%, providing the biggest boost to the Nikkei. Shares of technology investor SoftBank Group rose 0.6%.

Earlier in the day, the Bank of Japan’s closely watched “tankan” survey showed that the headline index measuring big manufacturers’ business confidence stood at +12 in March, in line with the median market forecast.

Tokai Tokyo’s Yasuda suggested that the data could have strengthened the yen, as it left open the possibility of early interest rate hikes by the BOJ.

The 10-year government bond yield rose 2 basis points to 1.505%.

So far, 180 stocks of the Nikkei’s 225 components were trading in the green.