TOKYO: Japan’s Nikkei share average climbed to a three-week high on Wednesday as a strong rebound in Wall Street prompted investors to scoop up local heavyweight technology stocks.
The Nikkei hit a peak of 35,142.12, its highest level since April 2, before ending the morning session up 1.72% at 34,808.8.
The broader Topix was up 1.74% at 2,576.2.
“Investors sold stocks as soon as they saw the index’s strong rebound, but overall the market sentiment is not bad,” said Takuro Hayashi, head of the investment research centre at IwaiCosmo Securities.
“But the market wanted to confirm the outcome of the talks between US and Japan finance chiefs this week, which may move the yen in either direction.”
Japanese Finance Minister Katsunobu Kato and US Treasury Secretary Scott Bessent are expected to meet in Washington this week, where currency rates are likely to be among key topics.
The yen strengthened to a seven-month high of 139.885 against the dollar in the previous session.
The dollar rebounded on Wednesday, pushing the yen to trade down 0.25% at 141.95.
Overnight, US stocks rose as a spate of quarterly earnings reports and hints at the de-escalation of US-China trade tensions brought buyers in from the sidelines.
Japan’s Nikkei drops as stronger yen pressures exporters
US stocks jumped further in extended trade after President Donald Trump said he has no plans to fire Federal Reserve Chair Jerome Powell, stepping back from his recent rhetoric against the central bank chief.
Trump told reporters he would be very nice in negotiations with China, and that tariffs on imports from the country would fall significantly following a deal, but not to zero.
In Japan, chip-related Tokyo Electron and Advantest rose 2.11% and 2.32%, respectively.
Uniqlo-brand owner Fast Retailing climbed 1.55%, emerging as the biggest boost for the Nikkei.
Shares of Fujifilm Holdings surged 11.51% after Regeneron Pharmaceuticals said it has signed a deal worth more than $3 billion with the Japanese healthcare company’s drug unit.
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