TOKYO: Japanese shares rose on Thursday, as the market tried to stabilise after a three-session losing streak sparked by the Middle East war, though gains were not enough to recoup the cumulative loss.
The Nikkei 225 Index gained 1.9 percent to close at 55,278.06, trimming gains from a 4.4 percent surge earlier in the day. The broader Topix ended 1.9 percent higher at 3,702.67 after rallying nearly 4 percent earlier.
The Nikkei fell to a one-month low on Wednesday, as part of a broader selloff in Asian equities, and shed 7.8 percent over the three sessions, with investors selling risk assets amid the Middle East conflict and booking profits after record highs.
“When share prices were spiking right until recently, the market felt overheated regardless of the timeframe you looked at,” said Shuutaro Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
“But now that we’ve seen a sharp pullback, that short-term sense of overheating is starting to dissipate.” Asian shares rallied on Thursday amid a decline in US Treasuries, signalling a tentative recovery in risk appetite that has been hammered by the escalating war in the Middle East.
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