TOKYO: Japan’s Nikkei share average recorded its largest daily gain in nine months on Tuesday, led by energy-related shares, as buoyant risk appetite spilled over from Wall Street and investors scooped up beaten-down stocks.
The Nikkei closed 2.43% higher at 31,746.53, posting its biggest daily gain since Jan. 18.
The index fell to an over four-month low last week and posted its third straight weekly loss.
The broader Topix ended 2.12% higher at 2,312.19 on Tuesday, its largest daily gain in about a year.
Japan’s Nikkei snaps five-day losing streak as US yields ease
“Japanese shares were sold too heavily until last week,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Research Institute.
“It was the time for a rebound and overnight gains in Wall Street supported investor sentiment. Easing U.S. Treasury yields was also a positive factor.”
Energy explorers surged about 8.5% as oil prices jumped at the start of the week after military clashes between Israel and the Palestinian group Hamas ignited fears that a wider conflict could hit oil supply from the Middle East.
Refiners rose more than 5%.
Trading firms were also strong, with Sojitz and Itochu both surging more than 7% to be among the top gainers on the Nikkei.
Airlines fell 1.34%, with Japan Airlines and ANA Holdings losing 1.75% and 0.75%, respectively, among the worst performers on the Nikkei.
Yaskawa Electric fell nearly 0.9% despite the electrical equipment maker posting a rise in its half-year profit. The company is among the first to report results every season, and is widely viewed as a bellwether.
Of the 225 stocks on the Nikkei, 215 rose and 10 lost.
Comments
Comments are closed for this article.