Japan’s Nikkei Ends 1% Higher after Sharp Fall; Chip-Related Shares Weigh (Update 1)

TOKYO, April 22 (Reuters) – Japan’s Nikkei share average rose on Monday, recouping some of the previous session’s sharp losses, although declines in chip-related stocks capped gains.

The Nikkei closed up 1% at 37,438.61, after declining briefly earlier in the session. Of the index’s 225 components, 196 stocks rose and 28 fell, with one flat.

“The index extended its gains toward the close as investors bought back stocks that fell too much,” said Shigetoshi Kamada, general manager of the research department at Tachibana Securities.

On Friday, the index fell 2.66% in its worst session in more than a year and a half, amid worries over an escalation in the Middle East conflict.

“Overall, the market was firm except for the chip-related stocks, which tracked their U.S. peers’ declines at the end of last week,”…