TOKYO: Japan's Nikkei share average reversed course to end higher on Tuesday, as chip-related stocks tracked a rebound of South Korean shares.
The Nikkei rose 0.5% to close at 65,856.43, after falling as much as 1.4% earlier in the session. The broader Topix gained 0.5% to 4,093.67.
"The Topix traded higher since the open, which meant that money was flowing into Japanese stocks," said Shuji Hosoi, senior strategist at Daiwa Securities.
"Chip-related shares weighed on the Nikkei, and they changed course as South Korea's benchmark reversed its losses," he said.
Shares in South Korea and Japan fell earlier in the session, following Wall Street, as investors continued to sell semiconductor stocks globally ahead of Nvidia's earnings report. Samsung Electronics erased losses to rise 0.19% and South Korea's benchmark KOSPI rose 0.68%.
In Japan, chip-making equipment maker Tokyo Electron and memory chipmaker Kioxia gave up losses to rise 0.47% and 0.65%, respectively.
Chip-testing equipment maker Advantest narrowed losses to end 0.14% lower.
The S&P 500 and Nasdaq ended lower on Monday, pulled down by technology stocks, as investors weighed fresh U.S. economic sanctions against Iran and braced for a week that also includes a closely watched inflation report.
Quarterly results from chipmaker Nvidia are expected to be a key catalyst for markets. Any sign of slowing growth could reignite concerns over stretched valuations.
Shares of Nvidia fell for the seventh straight session.
The shipping sector, which was the top performer among the Tokyo Stock Exchange's (TSE) 33 industry sub-indexes, ended 0.91% lower. - Reuters
