Japan Nikkei rebounds on bargain hunting

Japan share market finished session higher on Friday, 08 April 2022, as risk sentiments underpinned by tracking overnight gains on Wall Street. Meanwhile, shares were additionally supported by dip-buying after steep losses in previous two sessions.

Market gains were, however, capped amid concerns that the extension of a COVID-19 lockdown in China's financial hub of Shanghai may hamper the country's economic recovery as well as fears over aggressive monetary tightening by the U.S. Federal Reserve.

At closing bell, the 225-issue Nikkei Stock Average added 97.23 points, or 0.36%, to 26,985.80. The broader Topix index of all First Section issues on the Tokyo Stock Exchange advanced 3.89 points, or 0.21%, to 1,896.79.

Shares of Toyota Motor sank 3.4% to 2,095.5 yen, following reports that the Japanese automaker could be forced to pay some $1.5 billion in compensation to Australian customers who were sold cars with faulty diesel engine filters following its loss in a class action lawsuit.

Seven & i Holdings declined 3.4%, after the convenience store operator's earnings results in the year through February released Thursday failed to meet market expectations.

Toshiba gained 1.9% to 4,980 yen, after the Japanese conglomerate announced Thursday that it would halt its plan to split into two companies and consider other options including taking the firm private.

Nikon surged 7.5% to 1,368 yen, after the precision instrument maker said Thursday it will buy back its shares worth 30 billion yen, a move that would enhance shareholder returns.

CURRENCY NEWS: The U.S. dollar traded near the 124 yen line as the currency was bought on speculation that the interest rate gap between the United States and Japan would widen following an overnight rise in U.S. Treasury yields. At 5 p.m., the dollar fetched 124.04-05 yen compared with 123.92-124.02 yen in New York and 123.75-77 yen in Tokyo at 5 p.m. Thursday.

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