Nikkei extends recovery as techs gain ground

Tokyo, June 15 : The Nikkei average extended its recovery into a second session on Thursday, rising 1.65 percent by midmorning as Advantest Corp. and other tech firms gained on perceptions that share prices had fallen too far in a six-week tumble.

Investor confidence was boosted by gains in U.S. technology stocks and after foreign brokerages placed net buy orders before the start of Tokyo trade, their first net buying in 16 sessions.

''Stocks had fallen too far,'' said Yoku Ihara, manager of investment information at Retela Crea Securities.

Gains in US stocks, as well as the net buying orders by foreign brokerages, helped boost investor sentiment, he added.

''Investors are feeling a little bit better at the moment,'' he said.

The Nikkei was up 235.77 at 14,545.33 as of 0052 GMT. The advance marked its second straight gain since Tuesday, when it posted its biggest one-day percentage loss in two years.

The benchmark has lost nearly 19 percent from the 5-1/2-year high it hit in April.

The broader TOPIX index was up 1.61 percent at 1,489.81.

Chip-equipment maker Advantest Corp. was up 3.6 percent at 10,720 yen, becoming the biggest contributor to the Nikkei's advance.

Shares of Sumo Corp. gained 5 percent to 6,550 yen after it said it would acquire a 51 percent stake in fellow silicon wafer maker Komatsu Electronic Metals Co.

Shares of Komatsu Electronic fell 7.6 percent to 2,730 yen.

Reuters