Tokyo: Nikkei jumps most in 21 months on Ukraine hopes, pause in oil surge
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[TOKYO] Japan's Nikkei rallied the most in nearly 21 months on Thursday (Mar 10), tracking a rebound in global peers as battered market sentiment recovered with Ukraine and Russia looked set to resume diplomatic talks and crude oil prices easing from recent highs.
The Nikkei share average surged 3.94 per cent to 25,690.40, with 222 of its 225 component stocks advancing. The rally came after the benchmark lost 7 per cent over the previous 4 sessions, touching its lowest since November 2020 at 24,681.74 on Wednesday.
Every Nikkei sector rose on Thursday, with basic material stocks up the most, jumping 6.18 per cent, followed by 4.72 per cent gains for both real estate and consumer cyclicals. Tech and auto shares also rallied.
Stocks related to the so-called pandemic reopening trade also stood out, as new infections in the country continued to decline from a high in early February.
The broader Topix soared 4.04 per cent, after shedding 6.5 per cent in the last 4 sessions.
A rally in US and European equities spurred investors to rush back to buy Japanese shares as a pause in the surge in commodity prices also provided respite, according to traders.
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While many uncertainties remain around the Ukraine conflict, the easing of Omicron cases in Japan is making domestic demand-related stocks attractive, they said.
Chemical company Showa Denko was the Nikkei's biggest percentage gainer, up 10.40 per cent.
Vehicle battery-supplier GS Yuasa was next with a 10.03 per cent rise, with Shin-Etsu Chemical rounding out the top 3 with a 9.74 per cent advance.
Suzuki led automakers on the Nikkei with an 8.85 per cent rally, followed closely by an 8.61 per cent jump for Nissan.
Toyota rose 5.42 per cent.
Chipmaking giant Tokyo Electron was the Nikkei's biggest gainer by index points, rising 4.81 per cent. Peers Advantest and Renesas added 3.89 per cent and 4.97 per cent, respectively.
Travel company HIS gained 6.95 per cent, and airline ANA Holdings rose 5.48 per cent. REUTERS
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