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Tokyo: Nikkei rebounds as financials soar, ends quarter down 14.1 per cent
[TOKYO] Japanese stocks rebounded on Wednesday, shrugging off data that showed Japan's factory output unexpectedly fell for the second straight month in August.
The Nikkei share average gained 2.7 per cent to 17,388.15, but ended the quarter down 14.1 per cent, making it one of the worst performers among developed markets.
Analysts said most investors remained on the sidelines awaiting key economic data due from China on Thursday and the US on Friday. Those who led Wednesday's buying picked up bargains on stocks that plunged Tuesday, when the benchmark Nikkei share average fell to an 8-1/2 month low.
The market's sluggish performance in recent weeks has kept alive hopes that policymakers may bring about fresh stimulus to stoke growth, offering some support for Japanese stocks.
Banking, insurance and other financial sectors outperformed with the Topix insurance subindex gaining 3.9 per cent. Dai-Ichi Life Insurance climbed 4 per cent.
Japan Tobacco Inc bucked the rebound, tumbling 6.7 per cent after it agreed to pay Reynolds American Inc 600 billion yen (S$7.12 billion) for brand rights to its Natural American Spirit tobacco business outside of the US Traders said the price was viewed as too expensive.
The broader Topix gained 2.6 per cent to 1,411.16, closing with all of its 33 subindexes in positive territory, but it lost 13.5 per cent for the quarter. The JPX-Nikkei 400 rose 2.6 per cent to 12,628.54.