TOKYO: Japan’s Nikkei share average rebounded on Monday from a three-month low hit in the previous session, after Wall Street finished higher at the end of last week to boost investor sentiment.
The Nikkei closed 2.13% higher at 38,468.63 in a broad-based rally, while the broader Topix was up 2.23% at 2,759.67.
Monday marked the Nikkei’s first day of gains in nine sessions. The index hit its weakest level since late April last week amid a surge in the yen and declines in US technology stocks.
Wall Street’s major indexes ended higher on Friday as investors flocked back to tech megacaps that had triggered broad sell-offs earlier in the week, and US inflation data boosted optimism the Federal Reserve will soon commence cutting interest rates.
“The decline in US technology shares has finally paused... so that seems to be working as a positive factor” for Japanese equities, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
All but 11 of the Nikkei’s 225 constituents advanced, and big name tech stocks surged to give the overall index a hefty lift.
Chip-related shares Tokyo Electron and Advantest were up 3.7% and 4.1%, respectively.
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