Japan: Market rebounds from 16-month low

Japan share market finished session sharp higher on Thursday, 10 March 2022, as investors chased for undervalued stocks after suffering heavy losses in previous four sessions, thanks to positive lead from Wall Street overnight, pullback in crude oil futures, and the resumption of diplomatic talks between Russia and Ukraine.

At closing bell, the 225-issue Nikkei Stock Average surged 972.87 points, or 3.94%, to 25,690.40. The broader Topix index of all First Section issues on the Tokyo Stock Exchange inclined 71.14 points, or 4.04%, to 1,830.03.

All 33 TSE issues advanced, with top gaining industry category were marine transportation, air transportation and consumer credit issues.

Stocks shot up from the outset as market participants sought a wide range of battered shares in active trading, after concern over elevated oil prices receded following reports that the United Arab Emirates will call on fellow OPEC members to boost production, potentially easing some of the supply concerns caused by sanctions on Russia after its conflict with Ukraine. Other commodity futures tracked the fall in crude oil.

Shares of air transportation issues soared as falling oil futures raised hopes that damage to the sector would be curbed. ANA Holdings jumped 5.5% and Japan Airlines surged 6.7% to 1,996 yen.

Shares of exporters rose following the yen's weakening against the U.S. dollar. Electronic components manufacturers TDK gained 3.9% and Kyocera advanced 4%. Automakers such as Honda, Nissan, Toyota and Suzuki rallied 4-9%. Chipmakers Advantest, Renesas, Tokyo Electron climbed 4-5%.

ECONOMIC NEWS: Japan Producer Prices Accelerate 9.3% On Year In February- Japan producer prices accelerated 9.3% on year in February, the Bank of Japan said on Thursday, up from the upwardly revised 8.9% in January. On a monthly basis, producer prices jumped 0.8%, unchanged from the previous month following an upward revision from 0.6%.

CURRENCY NEWS: The Japanese yen traded at 115.90 per dollar, weaker than levels below 115.2 seen against the greenback earlier this week.

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