Japan's Nikkei rebounds as tech shares mirror Wall Street peers

Japan's Nikkei share average rebounded on Thursday from a nearly one-month low in the previous session, as domestic technology stocks led the rally following overnight gains among U.S. peers.

The Nikkei ended the day up 1.5% at 42,580.27, after the index's lowest close since August 8 on Wednesday.

Artificial intelligence-focussed start-up investor SoftBank Group extended gains throughout the session to finish as the Nikkei's top-performing stock with a 6.5% advance.


Circuitry- and optical cable-maker Fujikura jumped 5.1% to take the second place, followed by chip-testing equipment-maker Advantest, which gained 4.7%.

The broader Topix rose 1% to 3,080.17.

Overnight, the tech-heavy U.S. Nasdaq Composite advanced more than 1%, rebounding strongly from a 0.8% slide in the previous session.

Global equities were rattled this week by a sharp rise in long-term bond yields on worries about deteriorating fiscal health in major economies from the U.S. to France, Britain, and Japan. Markets calmed overnight, though, after soft U.S. jobs data reinforced expectations that the Federal Reserve will cut interest rates later this month.

Rather than signalling a bearish shift in equity markets, "it would be reasonable to see this adjustment as a buying opportunity", particularly for Japanese stocks, J.P.Morgan strategists wrote in a client note.

Compared with the U.S. and elsewhere, Japanese stocks are supported by "few concerns regarding valuation, low holdings by speculators and the effects of yen depreciation", they said.

Other notable gainers on Thursday included heavily weighted Uniqlo chain owner Fast Retailing, up 2.5%, Sony Group , up 2.9%, and Toyota Motor, which added 1.9%.

The standout decliner was Nidec, which tumbled by its limit of 22.4% after the electric motor maker revealed improper accounting at the firm.