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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

(Adds comments, details and updates stock prices)

TOKYO, April 8 (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.

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 ( FKURF ), 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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