[TOKYO] Japan’s Nikkei share average closed 6 per cent higher on Tuesday (Apr 8), recovering from a 1½ -year low hit in the previous session, as investors scooped up stocks, encouraged by signs of a recovery on Wall Street.
The Nikkei index climbed 6.03 per cent to 33,012.58, marking its sharpest daily percentage gain since August 6.
The broader Topix also recorded a more than 6 per cent gain, closing at 2,432.02.
“Investors bought back stocks as they thought the shares were oversold. They saw signs of a market recovery as US stock futures rose in Japan trade,” said Takamasa Ikeda, senior portfolio manager, GCI Asset Management.
The S&P 500 and the Dow closed lower, while the technology-heavy Nasdaq posted marginal gains on Monday following a roller coaster session.
US semiconductor index climbed 2.7 per cent overnight, while S&P and Nasdaq futures each rose more than 1 per cent in Asia trade on Tuesday, signalling cues of a recovery.
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Both the Nikkei and Topix are down roughly 13 per cent from levels before US President Donald Trump’s Liberation Day tariff announcement, raising concerns about the impact on export-dependent Japan.
Japanese Prime Minister Shigeru Ishiba said on Monday that during a phone call with Trump, he expressed disappointment with the tariff policies and urged him to reconsider.
The gains are not sustainable as there are still uncertainties surrounding the Japanese corporate outlook and the global economy, said Naoki Fujiwara, senior fund manager at Shinkin Asset Management.
“I think today’s jump was led by speculative investors who bought futures. And their bets will control the market move for a while,” said Fujiwara.
Nikkei and Topix futures surged overnight trading, triggering trading halt by a circuit breaker by the Japan Exchange Group’s Osaka bourse.
Among individual stocks, chip-making equipment maker Tokyo Electron jumped 8.7 per cent and chip-testing equipment maker Advantest surged 11.8 per cent.
Cable maker Fujikura, a gauge for data centre investments, surged 19.4 per cent.
Bank shares advanced, with Mitsubishi UFJ Financial Group surging 10.7 per cent and Mizuho Financial Group up 13.5 per cent.
All 33 industry sub-indexes of the Tokyo Stock Exchange (TSE) posted gains, with the non-ferrous sector jumping nearly 12 per cent to become the top gainer.
Of the more than 1,600 shares traded on the TSE’s prime market, 99 per cent closed in green. REUTERS
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