(MENAFN) Tokyo shares bounced back sharply on Wednesday, recovering from the steep losses seen the previous day as investors engaged in bargain-hunting and short-covering, fueling a robust technical rebound.

The Nikkei 225 index surged 825.35 points, or 1.76%, to close at 47,672.67.

Despite early pressure from a decline in U.S. tech stocks overnight, semiconductor-related equities gained strength in the afternoon, driving the broader market higher. At one point, the Nikkei’s rise topped 900 points.

Market insiders noted that foreign short-term investors, who had sold futures amid concerns over political instability, were aggressively repurchasing positions, further lifting market sentiment.

The afternoon session saw semiconductor giants gain traction after ASML Holding, the Dutch chip equipment manufacturer, reported July-September order volumes exceeding market forecasts.

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