Japan's Nikkei share average jumped on Thursday, vaulting above a key technical resistance of its 200-day moving average, on hopes of a quick economic normalisation, with investors snatching up deeply discounted stocks such as financials.
The positive mood overwhelmed concerns about deteriorating U.S-China relations as Washington signals it may no longer regard Hong Kong warranted special treatment as Beijing prepares new security law for the territory.
The Nikkei average gained 2.32% to 21,916.31, rising above a major chart point of the 200-day moving average at 21,657. The broader Topix gained 1.80% to 1,577.34. Both indexes hit their highest levels since late February.
Gains were led by short-covering in value-oriented shares, such as financials, steelmakers and autos - the sectors that had slumped since the global outbreak of the novel coronavirus.
Banks jumped 3.6%, while securities brokerages gained 2.2% and insurers rose 2.3%. Steelmakers added 4.1%.
Including those, value shares rose 2%, while growth-oriented shares played a quick catch-up in late trade to gain 1.6%.
Nissan Motor rallied 8.2% and Mitsubishi Motor rose 6.4% after the two automakers, along with Renault, announced a revival plan, pledging to cut vehicle ranges and pool manufacturing by region.
Dentsu soared 16.4% after the PR firm reported profits for the three months to March, compared to a net loss a year earlier.
Recruit Holdings gained 7% despite its January-March earnings falling short of expectations. Trade was active with the turnover jumping to 3.38 trillion yen ($31.35 billion), the highest in two months.
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