Japanese shares rise sharply on Wall Street gains, bargain hunting

YASKAWA Electric

10/10/2023 04:05

TOKYO, Oct 10 (Reuters) - Japanese shares rose sharply
on Tuesday, led by energy-related shares, as overnight gains on
Wall Street boosted risk appetite and investors scooped up
beaten-down stocks.
    The Nikkei  .N225  was up 2.49% to 31,766.75 by the midday
break, on track to post its biggest daily gain since Jan. 18, if
the gains hold.
    The index fell to an over four-month low last week and
posted its third straight weekly loss.
    The broader Topix  .TOPX  jumped 2.09% to 2,311.30 on
Tuesday. 
    "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 9.1% as oil prices
jumped overnight 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 6.02%.
    Trading firms were also strong, with Sojitz  2768.T  and  
Itochu  8001.T  surging 8.44% and 7.13%, respectively, becoming
the top gainers on the Nikkei.   
    All but two industry sub-indexes on the Tokyo Stock Exchange
rose. 
    Airlines  .IAIR.T  fell 1.56%, with Japan Airlines  9201.T 
and ANA Holdings  9202.T  losing 1.77% and 1.40%, to become the
worst performers on the Nikkei. 
    Yaskawa Electric  6506.T  rose 0.49% after the electrical
equipment maker posted 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;))