Japan's Nikkei rebounds from sharp loss as chip-related shares rise

By Junko Fujita

TOKYO, Oct 14 (Reuters) - Japan's Nikkei share average rebounded from the previous session's sharp decline on Wednesday, as chip-related stocks rose, while declines of bank stocks weighed on the Topix.

The Nikkei .N225 rose 0.61% to 68,193.13 by the midday break, after ending 1.8% lower on Tuesday.

The broader Topix .TOPX inched 0.05% lower to 4,108.8.

"Technology stocks bounced back in the current session, but their gains were limited ahead of local firms' earnings reports and the US midterm congressional elections," said Shota Sando, equity analyst at Tokai Tokyo Intelligence Laboratory.

Chip-related Advantest 6857.T and Tokyo Electron 8035.T rose 1.19% and 0.78%, respectively. Technology investor SoftBank Group 9984.T gained 2.15%.

These stocks rose even as the US PHLX chip index .SOX fell overnight. The index, a gauge for the Nikkei's move, fell for a fifth straight session. .N

Fibre optic cable maker Fujikura 5803.T rose 2.98%.

Taiyo Yuden 6976.T, a leading maker of multi-layer ceramic capacitors used to regulate power in AI servers, jumped 7.74% to become the top percentage gainer on the Nikkei.

Bank shares slipped, weighing on the Topix the most.

Mitsubishi UFJ Financial Group 8306.T fell 1.83%. Mizuho Financial Group 8411.T and Sumitomo Mitsui Financial Group 8316.T slipped 2.48% and 1.85%, respectively.

Overnight, US major investment bank stocks fell, with Citigroup C.N dipping 5.6% and Goldman Sachs GS.N losing 0.2% after both banks topped profit estimates. .N

Out of more than 1,500 stocks trading on the Tokyo Stock Exchange's prime market, 58% fell, 38% rose and 2% traded flat.