Japanese shares gain on upbeat profit forecasts, tech boost

  • Reuters
  • Stock Market News
Japanese shares gain on upbeat profit forecasts, tech boost
Credit: © Reuters.

TOKYO, Feb 1 (Reuters) - Japanese shares rose on Monday, after two straight sessions of declines, boosted by upbeat earnings forecasts and gains in beaten-down chipmakers and other technology companies.

Nikkei share average .N225 gained 1.03% at 27,948.30, as of 0142 GMT, and the broader Topix .TOPX rose 0.9% to 1,825.24.

"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 shares 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. 6701.T jumped 10%, 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.

Toto 5332.T surged 11% as the toilet maker raised its profit outlook.

However, some stocks declined despite the upbeat forecasts as investors had already priced in the revisions. Electronic component makers Murata 6981.T fell 3.17% and TDK 6762.T declined 6.28%, making it the biggest loser in the Nikkei 225 index.

Panasonic 6752.T edged down 0.3% after local media reported the home electric appliances maker would cease production of its own solar panels. shares gained, with Advantest 6857.T rising 1.69% and Tokyo Electron 8035.T gaining 1.66%.

The stocks that gained the most among the top 30 core Topix were game maker Nintendo 7974.T , up 3.22%, followed by conglomerate SoftBank Group's 9984.T 2.95% gain.

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