The Japanese Nikkei rises after 4 days of losses as chip-related shares jump

The Japanese Nikkei share average was won somewhat on Thursday after four straight sessions of losses, because chip-related shares followed their American colleagues higher.

The Nikkei rose by 0.28% to 44,675.96 In the afternoon holidays after shedding 2.6% in the last four sessions, with some analysts expecting that the recovery of short duration would be given the decrease in the wider Topix.

Earlier in the day, the Nikkei rose no less than 1.3%. The Topix fell 0.72% to 3,072.32.

“Remember retail investors from buying shares while waiting for the shares to fall further,” says Shigetoshi Kamada, general manager of the research department of Tachibana Securities.

“The Nikkei has risen too high. The decline in the Topix index is a real reflection of the market sentiment.”

The Nikkei, which is strongly weighed by chip-related shares, reached a record high last month, helped by profits in chip-related shares. So far 12% has risen this year, on the way to a third consecutive annual profit. Maker of Chip-Making Equipment Tokyo Electron rose on Thursday by 5.7% after the US Philadelphia Chip Index had a record high at night. Chip test equipment Maker Advantest Rose 2.11% and artificial intelligence technology Investor Softbank Group jumped with 5.13%.

“Investors betting on American technological shares today bought Japanese technical shares,” said Kamada.

Bank shares fell, with Mitsubishi UFJ Financial Group by 1.64%. Mizuho Financial Group and Sumitomo Mitsui Financial Group lost 1.25% and 0.99% respectively.

Car shares fell, where the Toyota motor and Honda engine loses 0.99% and 1.59% respectively.

Of the more than 1,600 shares that are traded on the main market of the Tokyo Stock Exchange, 74%, 22% rose and 2% traded flat.