Japan’s Nikkei hits near 2-week high on Wall Street’s strong finish

The Yomiuri Shimbun

11:09 JST, October 4, 2022

TOKYO (Reuters) — Japan’s Nikkei jumped on Tuesday to its highest in nearly two weeks, after Wall Street closed sharply higher overnight and as investors scooped up beaten-down heavyweights and growth stocks.

By 0120 GMT, the Nikkei share average had risen 2.6% to 26,908.75 in a broad rally, hitting its highest since Sept. 22, and on track for its biggest daily gain since Aug. 12. The broader Topix was up 2.66% at 1,897.05.

Wall Street’s three major indexes rallied more than 2% on Monday, as Treasury yields tumbled on weaker-than-expected manufacturing data, increasing the appeal of stocks.

“Investors scooped up shares that were beaten down, especially heavyweights and growth stocks,” said Maki Sawada, a strategist at Nomura Securities. “The market was also underpinned by the strong finish of Wall Street.”

Market participants shrugged off news that nuclear-armed North Korea fired a ballistic missile over Japan for the first time in five years earlier in the day.

Uniqlo clothing shop owner Fast Retailing rose 2.07% and was the biggest boost for the Nikkei, followed by chip-making equipment maker Tokyo Electron, rising 3.67%, and technology investor SoftBank Group, which climbed 3.49%.

Trading houses were the top performers among the Tokyo Stock Exchange’s 33 industry sub-indexes, rising 4.55% as Itochu raised its profit forecasts and announced a share buyback.

Itochu jumped 5.95%, while Mitsubishi Corp gained 4.7% and Mitsui & Co climbed 4.49%.

Energy shares gained, as oil prices rose after the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, said it would consider reducing output.

Explorers jumped 3.9%, with Inpex and Japan Petroleum Exploration Co gaining 4.21% and 2.38%, respectively.

Shippers Kawasaki Kisen was only the only decliner on the NIkkei, falling 0.8%.