TOKYO: Japanese stocks rose, with the Topix index heading for its biggest gain this month, as investor confidence that China can stabilise its markets spurred a global equity rally.
Tokyo Electric Power jumped 3.9 per cent after JPMorgan Chase initiated coverage on the utility with an overweight recommendation.
Fuji Heavy Industries surged 6 per cent after the Nikkei newspaper reported the maker of Subaru cars is considering a dividend increase.
Murata Manufacturing rose 6.3 per cent, leading Apple suppliers higher ahead of the unveiling of new iPhone and iPad models.
Bank of Yokohama rallied 4 per cent after agreeing to the terms of its merger with Higashi-Nippon Bank, which slid 0.8 per cent.
The Topix surged 3.1 per cent to 1460.45 as of 9:30am in Tokyo, headed for its biggest gain since August 28, as all of its 33 industry groups rose.
Volume on the gauge was 5 per cent above the 30-day intraday average.
The Nikkei 225 Stock Average rallied 3.3 per cent to 18,007.27, reversing losses on Tuesday that wiped out the gauge’s 2015 gain.
The yen traded at 120.23 per dollar, weakening for a third day. Global shares built on gains in Shanghai on Tuesday, with US stocks posting the second-best increase this year. A report showing the euro-area economy grew more that economists forecast added to the optimism.
“Expectations for more policy action from China and strength in the European economy saw the return of risk,” said Chihiro Ohta, general manager at SMBC Nikko Securities Inc. in Tokyo. “At long last, we may be seeing a real rebound.”
The Shanghai Composite on Tuesday swung from a loss of 2.3 per cent to a gain of 2.9 per cent by the end of trading on Wednesday. Most of the rally occurred after Japanese markets had closed. China’s finance ministry said it would implement stronger fiscal policy to boost the economy.
The euro-area economy grew more than initially reported in the second quarter, driven by a surge in exports and consumer spending. Gross domestic product rose 0.4 per cent in the three months through June after expanding a revised 0.5 per cent in the first quarter, the European Union’s statistics office said Tuesday. The Stoxx Europe 600 Index jumped 1.2 per cent.
Futures on the Standard & Poor’s 500 Index slipped added 0.1 per cent after the underlying gauge surged 2.5 per cent on Tuesday.
