(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.