TOKYO: Tokyo stocks rebounded Tuesday after investors aggressively sold shares in the previous session following hawkish comments from Fed chief Jerome Powell on his plan to continue hiking rates.
The benchmark Nikkei 225 index added 1.14 percent or 316.62 points to 28,195.58 yen, while the broader Topix index rose 1.25 percent, or 24.28 points, to 1,968.38.
Investors returned to buying in Tokyo despite overnight falls on Wall Street, Okasan Online Securities said in a note.
“The Nikkei lost more than 760 yen on Monday. For now, buying related to a natural rebound led the market,” the brokerage said.
A lower yen also helped exporter shares.
“The market to a degree has digested the downward pressure from the Powell shock,” Daiwa Securities said.
Natural resources stocks also gained as oil prices firmed.
Tokyo shares dive after Fed pledge to hike rates
The dollar fetched 138.49 yen in Asian trade, against 138.73 yen in New York late Monday – higher than the 136.82 yen during pre-Powell speech hours in Tokyo on Friday.
Among major shares, Olympus advanced 2.50 percent to 3,033 yen after it said it would sell its microscope unit to US private equity firm Bain Capital for 427.7 billion yen ($3 billion).
NEC soared 5.97 percent to 5,060 yen after the IT conglomerate said it would buy back up to 2.46 percent of shares for 30 billion yen.
Honda rose 0.84 percent to 3,700 yen after it said it is teaming up with South Korean battery maker LG Energy Solution to invest $4.4 billion in a new US electric car battery plant.
Its larger rival Toyota added 0.72 percent at 2,105 yen. Panasonic rose 0.99 percent to 1,121 yen.
SoftBank Group firmed 1.67 percent to 5,588 yen.
Energy developer Inpex soared 4.33 percent to 1,663 yen. JGC Holdings, a major builder of energy plants, rose 2.28 percent to 1,930 yen.
Japan’s jobless rate stood at 2.6 percent in July, unchanged from the previous month and in line with market expectations, according to official data released before the opening bell. The latest data did not prompt strong market reactions.
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