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.
"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%.
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