By Kevin Buckland
TOKYO, Feb 24 (Reuters) - Japan's Nikkei share average
rose the most in a month on Friday, rebounding from a one-month
low hit in the previous session, as chip-related stocks surged
and the incoming Bank of Japan governor backed the current easy
policy.
The Nikkei had gained 1.09% to 27,398.78 by the
midday recess, after earlier rising as much as 1.33%. That
followed a dip to the lowest since Jan. 23 at 27,046.08 on
Wednesday. Japanese markets were closed on Thursday for a
national holiday.
Friday's gains were lopsided, with chip industry giants
Tokyo Electron and Advantest contributing
about half of the Nikkei's total 294-point gain. Tokyo Electron
and Advantest advanced 6.12% and 7.82%, respectively, after U.S.
peer Nvidia forecast better-than-expected quarterly
sales.
Of the Nikkei's 225 components, 166 rose, 54 fell and five
were flat.
BOJ governor nominee Kazuo Ueda started several hours of
lower house testimony by saying that the current BOJ policy was
"appropriate" and "necessary", although he added that "if the
underlying outlook for prices improves further, we will have no
choice but to think about policy normalisation."
Earlier in the day, data showed Japan's consumer inflation
hit a 41-year high in January.
Bank shares underperformed on the idea of low yields for
longer, with the Tokyo Stock Exchange's banking sector subindex declining 0.31%.
The broader Topix - which is heavier with financial
stocks compared with the predominance of tech shares in the
Nikkei - rose a more modest 0.57% to 1,986.43.
The TSE's worst performing sector was pharma ,
dropping 1.1% after U.S. peer Moderna refrained from
raising annual sales forecasts for its COVID-19 vaccines.
Drugmakers made up two of the Nikkei's three
worst-performing stocks, with Daiichi Sankyo losing
2.22% and Takeda dropping 2.19%.
The Nikkei was staring at a second straight weekly loss,
down 0.42% from last Friday. The Topix was on track for a 0.28%
weekly slide.
(Reporting by Kevin Buckland; Editing by Subhranshu Sahu)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.