Japan’s Nikkei recovers as earnings optimism outweighs ‎concerns related to the Middle East

Japan’s Nikkei index recovered on Tuesday after the sharp decline it recorded in the previous session, tracking Wall Street, amid investor optimism about upcoming earnings data that overcame fears related to the conflict in Gaza.

According to Reuters, the Nikkei index closed 0.9 percent higher at 31,944.31 points, recovering about half of Monday’s losses when it fell 2 percent.

Of the 225 stocks on the index, 172 rose and 49 fell, while two remained stable.

The broader Topix index also rose 0.8 percent

“I expect that earnings in both Japan and the United States will be strong this quarter, and this is likely to support stock prices,” said Kenji Abe, an analyst at Daiwa Securities.

Shares of Japanese technology companies rebounded strongly, after witnessing intense selling at the beginning of the week

Japanese chip manufacturing giant Tokyo Electron recorded significant gains, as its shares jumped 2.4 percent. Advantest shares rose 1.2 percent and Lasertech rose 1.5 percent

SoftBank Group’s shares for investing in emerging companies rose 2.7 percent

However, Kyle Rodda, an analyst at Capital.com, warned against being fooled by this

“The price movement does not indicate that the risks posed by an outright ground war in the Gaza Strip have ended, as things look more like a correction in the situation after the relatively violent movements early last week,” Rodda wrote in a note.