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Japan's Nikkei rebounds as softer yen trumps tech losses
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Japan's Nikkei rebounds as softer yen trumps tech losses
Aug 29, 2024 2:35 AM

(Updates with levels as of 0600 GMT)

By Brigid Riley

TOKYO, Aug 27 (Reuters) - Japan's Nikkei share average

rebounded on Tuesday, as a pause in the yen's push higher

supported export-related shares, erasing early losses from a

drop in technology shares.

The Nikkei closed up 0.5% at 38,288.62, while the

broader Topix rose 0.7% to 2,680.8.

The benchmark Nikkei index spent much of the day in the red,

tracking the S&P 500 and tech-heavy Nasdaq lower

as global investors awaited quarterly report from AI heavyweight

Nvidia ( NVDA ) due Wednesday.

However, sentiment improved as the yen's climb higher

stalled on Tuesday, prompting investors to buy back

export-related stocks that took a hit in the previous session as

the currency touched a three-week high of 143.45 per dollar.

Sony Group ( SONY ) rallied 2.8%, while Honda Motor ( HMC )

and Toyota Motor ( TM ) both gained 1.8%.

Losses among chip-related shares narrowed late in trade,

although they remained a drag on the Nikkei. Big names Tokyo

Electron ( TOELF ) fell about 1% and Advantest ( ADTTF ), which

counts Nvidia ( NVDA ) among its customers, slumped 1.6%.

Investors were taking a wait-and-see approach ahead of

Nvidia's ( NVDA ) earnings report, said Masahiro Ichikawa, chief market

strategist at Sumitomo Mitsui DS Asset Management.

Nvidia ( NVDA ) has been at the center of market enthusiasm for

artificial intelligence, and there is pressure on the firm to

pull out stellar results.

"We're in a situation where the bar has risen," Ichikawa

said, adding that if Nvidia's ( NVDA ) earnings come in as expected,

there might be some brief selling of tech shares.

Lasertec Corp ( LSRCF ) slid 4.3% to become the biggest

percentage loser.

Meanwhile, Uniqlo parent firm Fast Retailing ( FRCOF )

and Chugai Pharmaceutical ( CHGCF ) gained 0.6% and 3.3%,

respectively, to give the Nikkei the biggest boost.

Among the Tokyo Stock Exchange's 33 industry sectors, mining

rallied 2.2% and oil and coal rose 1.6%

after oil prices surged overnight on concerns of possible supply

disruptions.

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