Nikkei higher as traders gauge efforts to calm energy markets

TOKYO: Japan’s Nikkei share gauge closed higher on Tuesday, recovering some of the losses from the previous session, as investors reacted to moves by major economies to tap oil reserves to stabilise markets shaken by the Middle East conflict.

The benchmark Nikkei 225 Index rose 2.88 percent to close at 54,248.39, recouping some losses after a 5.2 percent plunge on Monday. The broader Topix climbed 2.47 percent to 3,664.28.

Japanese Finance Minister Satsuki Katayama said G7 energy ministers are expected to meet tonight to discuss the process of releasing oil reserves.

US President Donald Trump said the war in the Middle East could be over soon, even as Iran’s hardliners staged a show of loyalty to new Supreme Leader Mojtaba Khamenei.

“There is clearly a rebound effect from yesterday’s sharp decline,” said Maki Sawada, an equities strategist at Nomura Securities. “The situation remains dependent on Middle East developments… Therefore, we certainly see the possibility of another downturn.”