TOKYO – Japanese stocks rebounded from a nearly 2% drop in the previous session on Friday as investors scooped up beat-down stocks in hopes of boosting the earnings of domestic companies.
Nikkei shares rose 0.9% to 26,640.61 at 0212 GMT and were set to gain nearly one percent for the week. Broad Topics added 0.47% to 1,868.89 and was a must for weekly growth of 0.49%.
The gains came after Wall Street closed lower overnight, fearing the wider impact of inflation and its depressing outlook on the risk of sinking into the Cisco system.
“Even though Dow and S&P increased their losses, Japanese equities were strong today,” said Shigetoshi Kamada, general manager of research at Tachibana Securities.
“Overall, the corporate outlook is relatively strong, and many have made moderate forecasts for the currency, which could mean a further reversal by the end of the year.”
Uniqlo’s owner Fast Retail grew 2.77% and gave Nikkei the biggest boost, followed by technology start-up investor SoftBank Group, which grew 3.42%, and chip-making equipment maker Tokyo Electron, which added 1.21%.
Seco Epson rose 8.81% and was the top gainer on the Nikkei after the watchmaker announced a buyback of up to 9.35% of its shares.
Tokyo Gas fell 2.97% and a report said gas suppliers would bear the rising cost because it had a limit on how much it could supply consumers.
Hoya rose 4.4% and was the top gainer among the top 30 key topic names, followed by stuffing agency Recruit Holdings, which rose 4.28%.
Touch panel maker Keynes fell 2.87% and was the worst performer in the top 30, followed by retailers Seven and I Holdings, which lost 1.77%.
The Nikkei index was up 155 points against 67 declines.
(Reporting by Junko Fujita; Editing by Aditya Soni)