TOKYO: Japanese stocks jumped for a second day, heading for the biggest two-day rally since November, as a U.S. equity rebound bolstered investor appetite for risk assets.
Food-related stocks led gains, with soy-sauce maker Kikkoman Corp. climbing 5.2 percent. Toyota Motor Corp. strengthened 3.5 percent after announcing plans to re-start production in Tianjin, China. Exporters advanced after the yen weakened, including Alpine Electronics Inc., which rose 2.3 percent after soaring 5.1 percent on Wednesday. Shimano Inc. surged 7.9 percent after a broker upgraded its outlook on the maker of bicycle parts.
The Topix index climbed 2.6 percent to 1,517.72 as of 12:42 p.m. in Tokyo, building on Wednesday’s 3.2 percent gain, as all of its 33 industry groups advanced. The Nikkei 225 Stock Average added 1.9 percent to 18,723.04. The yen traded at 120.09 per dollar after weakening 0.9 percent on Wednesday. Shares in the U.S. staged the biggest rally since 2011, halting a six-day rout, as a Federal Reserve policy maker signaled a September interest-rate increase is less likely amid market turmoil and weakening Chinese economic growth.
“The consensus now is that a September rate hike probably won’t happen,” said Mitsushige Akino, an executive officer at Ichiyoshi Asset Management Co. in Tokyo. “This means we get to keep the excessive liquidity that’s been supporting markets for a little longer, so there’s a feeling of relief.”
