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Japan's Nikkei jumps 6%, rebounds from rout on market recovery hopes
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Japan's Nikkei jumps 6%, rebounds from rout on market recovery hopes
Apr 7, 2025 7:49 PM

TOKYO (Reuters) -Japan's Nikkei share average climbed 6% on Tuesday, rebounding 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.

As of 0202 GMT, the Nikkei index was up 6.5% at 33,161.72, while the broader Topix traded 6.8% higher at 2,444.44.

"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.[.N]

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.

Gains on Tuesday were further supported by optimism that tariffs on Japan could be eased through negotiations between the two nation's leaders, Ikeda said.

Among individual stocks, chip-making equipment maker Tokyo Electron ( TOELF ) jumped 8.6% and chip-testing equipment maker Advantest ( ADTTF ) surged 11.6%.

Cable maker Fujikura, a gauge for data centre investments, surged 19% to become the top percentage gainer in the Nikkei.

Bank shares also advanced, with Mitsubishi UFJ Financial Group ( MUFG ) surging 12.3% and Mizuho Financial Group ( MFG ) up 14%.

All 33 industry sub-indexes of the Tokyo Stock Exchange posted gains, with the insurance sector jumping 12.5% and the banking index rising 11.6%.

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