[TOKYO] Japan's Nikkei closed higher on Wednesday (Apr 13) to post its biggest gain in more than 3 weeks, as US inflation data released overnight largely met analysts' expectations.
The Nikkei share average ended 1.93 per cent higher at 26,843.49 - the biggest jump since Mar 22 - and marked a sharp rebound from its near 4-week low hit on Tuesday. The broader Topix rose 1.42 per cent to 1,890.06.
"Shares were sold too much yesterday as investors were too cautious about the US CPI data," said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
"It turned out that the core inflation figure was in line with the market expectations, so investors bought back stocks today."
Overnight, the CPI report showed prices urban American consumers pay for a basket of goods posted the biggest monthly jump since September 2005, and an annual surge of 8.5 per cent, the hottest year-on-year inflation number in more than 4 decades.
Chipmaking equipment maker Tokyo Electron provided the biggest boost to the Nikkei, rising 3.34 per cent, followed by Uniqlo clothing shop owner Fast Retailing, up 2.88 per cent.
Air-conditioning maker Daikin Industries climbed 4 per cent.
Lawson surged 11.63 per cent after a report said the convenience store chain was planning an initial public offering for Seijo Ishii, a chain of supermarket, by the 2023 financial year.
Shionogi tumbled 11.14 per cent amid concerns that the drugmaker's oral treatment for Covid-19, which is still awaiting approval from regulators, could pose pregnancy risks. REUTERS