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Tokyo stocks end nearly 3% higher after US rebound

The benchmark Nikkei 225 index jumped 2.96 percent, or 776.42 points, to close at 26,992.21. (AFP)
The benchmark Nikkei 225 index jumped 2.96 percent, or 776.42 points, to close at 26,992.21. (AFP)
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04 Oct 2022 04:10:22 GMT9
04 Oct 2022 04:10:22 GMT9

Tokyo stocks surged on Tuesday after Wall Street shares rebounded, with soft US data fuelling speculation that Fed officials may slow efforts to hike interest rates.

The benchmark Nikkei 225 index jumped 2.96 percent, or 776.42 points, to close at 26,992.21, while the broader Topix index added 3.21 percent, or 59.31 points, to 1,906.89.

The Tokyo market remained buoyant throughout the day, as global investors pushed up equities after fresh US data from the Institute for Supply Management (ISM) indicated softer manufacturing activities.

“The slow US ISM manufacturing report on business evoked concerns about global recession and inflated hopes that the Federal Reserve may pivot its monetary policies,” Daiwa Securities said.

“Exporters and raw material-related shares attracted buyers,” the brokerage said, adding that energy shares also benefited from speculation about possible production cuts.

The dollar stood at 144.74 yen, inching up from 144.66 yen on Monday in New York.

Markets also perked up around the world after the British government shelved controversial plans to cut income tax rates for the wealthy.

The about-face “is a sign that the government is responding to market concerns and also to polling which may mean the new government is not as cavalier as some had feared”, said Tapas Strickland of National Australia Bank.

Shortly before the opening bell, North Korea launched a ballistic missile that flew over Japan and fell into the Pacific.

The test prompted a flurry of diplomatic actions by the US, South Korea and Japan that jointly condemned the launch, but it appeared to have had little impact on trading.

In Tokyo, energy developer Inpex roared 5.36 percent to 1,475 yen. Japan Petroleum Exploration Co added 3.37 percent to 3,685 yen.

Trading houses also saw healthy gains. Mitsui and Co surged 5.39 percent to 3,285 yen, and Mitsubishi Corp rose 4.82 percent to 4,241 yen.

SoftBank Group shot up 5.10 percent to 5,235 yen, Sony Group rose 2.52 percent to 9,749 yen, and Toyota advanced 3.22 percent to 2,004 yen.

Uniqlo operator Fast Retailing rose 2.02 percent to 77,860 yen.

AFP

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