TOKYO, June 9 (Reuters) - Japan's Nikkei share average rose
on Tuesday, as chip-related heavyweights recovered from heavy
losses in the previous session.
The Nikkei was up 0.95% to 64,635.71 as of 0209 GMT,
after closing 3.85% lower in the previous session, posting its
largest loss in three months.
The index was choppy earlier in the session, inching down as
much as 0.16%.
The broader Topix rose 0.5% to 3,871.78.
Chip-making equipment maker Tokyo Electron ( TOELF ) jumped
7.3% and chip-testing equipment maker Advantest ( ADTTF ) gained
4.12%.
"Confidence for AI-related shares remains strong, but there
was caution for the fast-paced rally in the market earlier in
the session," said Kazuaki Shimada, chief strategist at
IwaiCosmo Securities.
"Investors might have sold stocks to raise money to buy SpaceX
ahead of its initial public offering this week," he said.
The Nikkei crossed above 68,000 to a record high earlier
this month on optimism for the growth of AI-related shares. The
index has risen 28% so far this year.
The previous session's heavy sell-off followed sharp
declines in U.S. technology stocks at the end of last week.
Bucking the trend on Tuesday, technology investor SoftBank
Group fell 2.9%, weighing most on the Nikkei.
Robot maker Fanuc ( FANUF ) slipped 0.95%.
Financials rose as the market braces for the Bank of Japan's
interest rate hike at its policy meeting next week. Mitsubishi
UFJ Financial Group ( MUFG ) and Mizuho Financial Group ( MFG )
rose 0.5% and 1.4%, respectively.
Of more than 1,500 stocks trading on the Tokyo Stock
Exchange's prime market, 57% rose, 39% fell, and 3% traded
flat.