Japan's Nikkei clocks best day in nine months on Wall Street gains, bargain hunting

YASKAWA Electric

10/10/2023 07:38

TOKYO, Oct 10 (Reuters) - Japan's Nikkei share average
recorded its largest daily gain in nine months on Tuesday, led
by energy-related shares, as buoyant risk appetite spilled over
from Wall Street and investors scooped up beaten-down stocks.
    The Nikkei  .N225  closed 2.43% higher at 31,746.53, posting
its biggest daily gain since Jan. 18.
    The index fell to an over four-month low last week and
posted its third straight weekly loss.
    The broader Topix  .TOPX  ended 2.12% higher at 2,312.19 on
Tuesday, its largest daily gain in about a year.
    "Japanese shares were sold too heavily until last week,"
said Shuutarou Yasuda, a market analyst at Tokai Tokyo Research
Institute.
    "It was the time for a rebound and overnight gains in Wall
Street supported investor sentiment. Easing U.S. Treasury yields
was also a positive factor." 
     Energy explorers  .IMING.T  surged about 8.5% as oil prices
jumped at the start of the week after military clashes between
Israel and the Palestinian Islamist group Hamas ignited fears
that a wider conflict could hit oil supply from the Middle East.
    Refiners  .IPETE.T  rose more than 5%.
    Trading firms were also strong, with Sojitz  2768.T  and
Itochu  8001.T  both surging more than 7% to be among the top
gainers on the Nikkei.   
    Airlines  .IAIRL.T  fell 1.34%, with Japan Airlines  9201.T 
and ANA Holdings  9202.T  losing 1.75% and 0.75%, respectively,
among the worst performers on the Nikkei. 
    Yaskawa Electric  6506.T  fell nearly 0.9% despite the
electrical equipment maker posting a rise in its half-year
profit. The company is among the first to report results every
season, and is widely viewed as a bellwether.
    Of the 225 stocks on the Nikkei, 215 rose and 10 lost. 
    

 (Reporting by Junko Fujita; Editing by Mrigank Dhaniwala)
 ((junko.fujita@thomsonreuters.com;))