TOKYO: Japan's Nikkei index rose on Thursday, tracking a rally on Wall Street overnight after Federal Reserve Chair Jerome Powell signalled a slower pace of monetary tightening than some had feared.
The Nikkei share average ended the morning session up 0.82% at 26,608.21, with about seven stocks advancing for every one that declined. The index was still off earlier highs, when it rose as much as 1.18%, as Ukraine concerns lingered.
The broader Topix added 1.27% to 1,883.59, after earlier gaining 1.47%.
The US S&P 500 jumped 1.86% on Wednesday after Powell testified to Congress that the central bank would begin "carefully" raising rates from this month, while keeping a close eye on inflation and developments in Ukraine.
"The path for rate hikes has become clearer, but there's still uncertainty over the Ukraine situation and the impact of the rise in resource prices, making it hard to chase the market higher," said Jun Kitazawa, an equity strategist at Miki Securities.
Energy was the Nikkei's best performing subsector, rallying 3.59% as crude oil continued to shoot up.
Financials were next with a 2.64% rise as long-term global bond yields recovered from Wednesday's steep drop, improving the outlook for profits.
Automakers were another outperformer, buoyed as a weaker yen lifted the value of overseas sales, and after US peer Ford soared after setting up a separate electric vehicle unit.
Mazda gained 4.94%, while Mitsubishi Motors added 4.61%. Toyota rose 0.81%.
Chipmaker Tokyo Electron was the Nikkei's biggest riser by index points, gaining 1.01%. Smaller peer Renesas rallied 1.84%.
Nintendo gained 2.16% and Sony advanced 1.34%. At the other end, advertising giant Dentsu was the biggest percentage decliner with a 2.94% drop.
Uniqlo clothing store operator Fast Retailing lost 0.87%, making it the biggest drag by index points.
Startup investor SoftBank Group was next, falling 0.84%.
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