TOKYO: Japan’s Nikkei share average rose on Thursday, as data showed better-than-expected economic growth in the June quarter and Wall Street closed higher overnight on September rate cut prospects in a boost to investor sentiment.
The Nikkei closed 0.8% higher at 36,726.64, locking in a fourth straight day of gains, while the broader Topix finished up 0.7% at 2,600.75.
Stocks sensitive to the economy’s performance rose after data showed Japan’s economy expanded by a faster-than-expected annualised 3.1% in April-June.
Banks rose 2.8% to lead sectoral gains, while both securities firms and oil and coal producers gained 2.7%.
The positive economic news gave support as investors continued to buy shares that have underperformed since last month, said Kenji Abe, chief strategist at Daiwa Securities.
“Japanese equity prices plunged from mid-July to early August and are now quite undervalued,” he said.
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