TOKYO, Feb 1 (Reuters) - Japanese shares closed higher on Monday, after two straight sessions of declines, as upbeat earnings forecasts and gains in beaten-down chipmakers lifted sentiment.
"Investors are buying shares that were sold more than they should have last week," said Norihiro Fujito, chief investment strategist, Mitsubishi UFJ Morgan Stanley (NYSE: MS ) Securities. "Last week's sell-downs were driven by sentimental reasons."
Japanese stocks had tumbled for two days as investors grew nervous about further market turbulences in the U.S. caused by the headline-grabbing battle between retail investors and funds that specialise in shorting stocks. shares also rallied and U.S. stock futures recouped early losses as newly empowered retail investors turned their attention to precious metals, promising a respite to some hard-hit hedge funds. MKTS/GLOB
NEC 6701.T surged 12.81%, making it the biggest gainer in the Nikkei 225 index, after the computer network services company reported a 5.7% rise in its nine-month operating profit, followed by Toto 5332.T which jumped 12.44% after the toilet maker raised its profit outlook.
Game maker Nintendo 7974.T rose 3.4% ahead of its earnings report on Monday.
Panasonic 6752.T edged down 0.89% after the home electric appliances maker said it would cease production of its own solar panels.
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