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Japan’s Nikkei recovers from 2-week low as tech stocks gain

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TOKYO — Japan’s Nikkei ended more than 1% higher on Tuesday led by technology heavyweights, as the benchmark rebounded from a two-week low hit in the previous session.

The Nikkei share average rose 1.14% to close at 28,195.58, while the broader Topix climbed 1.25% to 1,968.38.

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“Wall Street declined overnight but their losses were limited, which underpinned sentiment for the Japanese market,” said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute.

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“U.S. futures gain is another positive factor.”

U.S. stocks closed lower on Monday, adding to last week’s sharp losses on nagging concerns about the Federal Reserve’s determination to aggressively hike interest rates to fight inflation even as the economy slows.

In Japan, chipmaking equipment maker Tokyo Electron rose 1.65% and was the biggest boost for the Nikkei, followed by technology investor SoftBank Group, which rose 1.67%. Phone company KDDI rose 2.14%.

NEC surged 5.97% to become the top gainer on the Nikkei, after the computer maker announced buying back up to 2.46% of its own shares.

Olympus advanced 2.5% after the medical equipment maker agreed to sell its microscope unit to private equity firm Bain Capital for 427.6 billion yen ($3.1 billion), in what would be the Japanese company’s biggest divestment yet.

Oisix Ra Daichi gained 5.37% after the grocery delivery firm announced an offer to buy a stake in restaurant operator Shidax.

Shidax tanked 5.35% as the offer price was lower than the close of the previous session. There were 206 advancers on the Nikkei index against 18 decliners.

The volume of shares traded on the Tokyo Stock Exchange’s main board was 1.05 billion, compared to the average of 1.11 billion in the past 30 days.

(Reporting by Junko Fujita; Editing by Rashmi Aich)

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