Japan's Nikkei rebounds from sharp loss as chip-related shares rise

Japan's Nikkei share average recovered on Wednesday from the previous session's steep fall, with chip-related stocks helping lift the index. By the midday break, the Nikkei had risen 0.61% to 68,193.13, after closing 1.8% weaker on Tuesday. The broader Topix edged down 0.05% to 4,108.8, as bank stocks slipped and weighed on it most, according to Business Recorder.

Chip makers Advantest and Tokyo Electron posted gains of 1.19% and 0.78%, while SoftBank Group added 2.15%, even though the US PHLX chip index fell overnight for a fifth straight session. Fujikura, a fibre optic cable maker, climbed 2.98%. Taiyo Yuden, a producer of multi-layer ceramic capacitors that help control power in AI servers, surged 7.74% to lead the Nikkei's gainers.

Investment bank shares fell in the US overnight, with Citigroup down 5.6% and Goldman Sachs off 0.2%, even though both had beaten profit forecasts. Among more than 1,500 prime-market stocks in Tokyo, 58% declined, 38% advanced and 2% ended flat. Shota Sando, an equity analyst at Tokai Tokyo Intelligence Laboratory, said technology shares bounced, though gains were capped ahead of domestic earnings and US midterm elections for Congress.