Nikkei rebounds, supported by chip and energy stocks

Japan’s Nikkei rose sharply on Monday, as chip-related stocks rose and energy stocks tracked gains in oil prices.

The Nikkei gained in the last hour of trading, to close 1.07 percent higher at 26,215.79 points, after falling 1.22 percent earlier in the day.

The broader Topix index advanced 0.63 percent to 1,847.58 points, after incurring sharp losses that reached 1.12 percent.

Both indices recorded their worst month in September since the COVID-19 pandemic first rocked markets in two and a half years.

Despite a survey by the Bank of Japan showing deteriorating sentiment in the business environment amid severe inflation, major manufacturers expect a better environment three months from now. They plan to increase capital spending by 21.5 percent.

The energy sector was the best performer on the Nikkei on Monday, rising 2.6 percent as oil prices rose amid talk of OPEC+ production cuts this week.

The Nikkei’s biggest gainer in terms of the number of points on the index was Tokyo Electron Chip Equipment, which rose 57 points, or 4.59 percent. Advantest shares came after, up 22 points, or 4.78 percent.

Among the notable gainers were Toyota Motor Co., which advanced 3.49 percent, Sony Group, which rose 2.4 percent, and SoftBank, which rose 1.65%.