Nikkei gains on corporate tax cut hopes; oil shares surge on Iraq

Japan's Nikkei share average bounced off a 2 1/2-week low struck in early trade on Friday, spurred by a Jiji news agency report that Prime Minister Shinzo Abe plans to announce the policy regarding a cut in the corporate tax rate later in the day.

The Nikkei rose 0.8% to 15,097.84, after earlier falling to 14,830.99, the lowest since June 2. For the week, the index added 0.1%, posting a fourth consecutive weekly gain.

Oil sector shares surged after crude prices jumped to nine-month highs on Thursday due to fears that the escalating conflict in Iraq will disrupt supplies from OPEC's second-largest producer.

 

The broader Topix gained 0.5% to 1,243.97, while the JPX-Nikkei Index 400 advanced 0.5% to 11,323.47.