Global Market: Japan's Nikkei rebounds as chip stocks rise, Topix slips on bank losses

Banking stocks came under pressure, emerging as the biggest drag on the Topix.

The Nikkei rose 0.61% to 68,193.13 at the midday break after falling 1.8% on Tuesday. The broader Topix slipped 0.05% to 4,108.8.

Technology stocks led the recovery, although gains remained limited ahead of domestic corporate earnings reports and the US midterm congressional elections, the report stated, citing Shota Sando, an equity analyst at Tokai Tokyo Intelligence Laboratory.

Also Read | Global Market Today: Asian stocks rise on Fed rate signal, oil gains

Chipmaking equipment manufacturers Advantest and Tokyo Electron gained 1.19% and 0.78%, respectively. SoftBank Group, a major technology investor, advanced 2.15%.

The gains came despite continued weakness in US semiconductor stocks overnight. The Philadelphia Semiconductor Index fell for a fifth consecutive session, extending its recent losses.

Elsewhere in the technology sector, fibre-optic cable maker Fujikura climbed 2.98%. Taiyo Yuden, a leading manufacturer of multilayer ceramic capacitors used in power regulation for artificial intelligence servers, surged 7.74%, making it the biggest percentage gainer on the Nikkei.

Also Read | US stocks: Nasdaq ends down as chipmakers fall and bank earnings roll in

Banking stocks, however, came under pressure, emerging as the biggest drag on the Topix. Mitsubishi UFJ Financial Group fell 1.83%, while Mizuho Financial Group and Sumitomo Mitsui Financial Group declined 2.48% and 1.85%, respectively, as per the report.

The weakness followed losses among major US investment bank stocks overnight. Citigroup dropped 5.6% and Goldman Sachs fell 0.2%, even after both lenders reported profits above market estimates.

Market breadth remained negative on the Tokyo Stock Exchange’s Prime Market. Of more than 1,500 stocks traded, 58% declined, 38% advanced and 2% were unchanged.