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Japan's Nikkei ends 6% higher on market recovery hopes
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Japan's Nikkei ends 6% higher on market recovery hopes
Apr 8, 2025 12:32 AM

(Updates with details and closing prices)

TOKYO, April 8 (Reuters) - Japan's Nikkei share average

closed 6% higher on Tuesday, recovering from a 1-1/2-year low

hit in the previous session, as investors scooped up stocks,

encouraged by signs of a recovery on Wall Street.

The Nikkei index climbed 6.03% to 33,012.58, marking

its sharpest daily percentage gain since August 6.

The broader Topix also recorded a more than 6% gain,

closing at 2,432.02.

"Investors bought back stocks as they thought the shares

were oversold. They saw signs of a market recovery as U.S. stock

futures rose in Japan trade," said Takamasa Ikeda, senior

portfolio manager, GCI Asset Management.

The S&P 500 and the Dow closed lower, while the

technology-heavy Nasdaq posted marginal gains on Monday

following a roller coaster session.

U.S. semiconductor index climbed 2.7% overnight,

while S&P and Nasdaq futures each rose more than

1% in Asia trade on Tuesday, signalling cues of a recovery.

Both the Nikkei and Topix are down roughly 13% from levels

before U.S. President Donald Trump's Liberation Day tariff

announcement, raising concerns about the impact on

export-dependent Japan.

Japanese Prime Minister Shigeru Ishiba said on Monday that

during a phone call with Trump, he expressed disappointment with

the tariff policies and urged him to reconsider.

The gains are not sustainable as there are still

uncertainties surrounding the Japanese corporate outlook and the

global economy, said Naoki Fujiwara, senior fund manager at

Shinkin Asset Management.

"I think today's jump was led by speculative investors who

bought futures. And their bets will control the market move for

a while," said Fujiwara.

Nikkei and Topix futures surged overnight trading,

triggering trading halt by a circuit breaker by the Japan

Exchange Group's ( OSCUF ) Osaka bourse.

Among individual stocks, chip-making equipment maker Tokyo

Electron ( TOELF ) jumped 8.7% and chip-testing equipment maker

Advantest ( ADTTF ) surged 11.8%.

Cable maker Fujikura ( FKURF ), a gauge for data centre

investments, surged 19.4%.

Bank shares advanced, with Mitsubishi UFJ Financial Group ( MUFG )

surging 10.7% and Mizuho Financial Group ( MFG ) up

13.5%.

All 33 industry sub-indexes of the Tokyo Stock Exchange

(TSE) posted gains, with the non-ferrous sector

jumping nearly 12% to become the top gainer.

Of the more than 1,600 shares traded on the TSE's prime

market, 99% closed in green.

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