Stocks

Nikkei rallies, buoyed by dramatic Wall St rebound

A generic image of a pair of glasses on top of a calculator
Credit: Shutterstock photo

* Nikkei up 3.88 pct to bounce from 20-mth low, Topix up 4.9pct

* Energy-related shares boosted by oil rebound, techs alsorise

By Shinichi Saoshiro

The Nikkei .N225 ended the day up 3.88 percent at20,077.62, posting its biggest one-day percentage gain sinceNovember 2016. The index, which had sunk into bear marketterritory this week, hit 18,948.58 on Wednesday - its lowestsince late April 2017.

Index heavyweight SoftBank Group9984.T advanced 4.7percent and Fast Retailing9983.T rose 1.3 percent.

The Dow .DJI surged more than 1,000 points for the firsttime overnight, leading a broad Wall Street rebound after areport of robust holiday sales helped mollify concerns about thehealth of the U.S. economy.

Earlier, Wall Street had suffered its worst-ever ChristmasEve drop on the back of factors including turmoil in the WhiteHouse. .N

"Japanese shares may be higher, but with market volatilityso high, tomorrow could be an entirely different story," saidSoichiro Monji, senior economist at Daiwa SB Investments.

"Equities are moving up and down in holiday-thinned trade,and it would take the return of many investors next year for themarket to gather its bearings."

Energy-related shares were boosted as oil surged, postingits strongest daily gain in more than two years in a partialrebound from steep losses that had pushed crude benchmarks tolows not seen since 2017. O/R

Petroleum product majors Inpex Corp1605.T and JapanPetroleum Exploration Co 1662.T rose 4.2 percent and 6percent, respectively. Oil refiner Idemitsu Kosan5019.T climbed 10 percent and Showa Shell Sekiyu KK 5002.T advanced 8percent.

Taking comfort from a strong rebound in their U.S. peers,technology shares also gained.

Tokyo Electron8035.T rose 3.1 percent, Screen Holdings7735.T climbed 3.8 percent and Advantest Corp6857.T soared5.2 percent. Sony Corp6758.T was up 5.5 percent.

Information technology company Cybozu Inc4776.T jumped 12 percent after it raised its profit outlook for the yearthrough December 2018. urn:newsml:reuters.com:*:nTSXZ6f1b2

The broader Topix .TOPX ended the day up 4.9 percent at1,501.63 following a descent to 1,408.89 on Wednesday, itslowest since November 2016.

All of the Tokyo Stock Exchange's 33 subindexes were inpositive territory, led by oil and coal products .IPETE.T . (Editing by Shri Navaratnam) ((shinichi.saoshiro@thomsonreuters.com; Reuters Messaging:shinichi.saoshiro.reuters.com@reuters.net+813-6441-1774))


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More