Tokyo stocks rallied on Wednesday with the benchmark Nikkei index closing at a near two-week high as the yen's retreat and a rebound in oil prices, coupled with robust export data from China, lifted investor sentiment and confidence in the health of the world's second-largest economy.
The 225-issue Nikkei Stock Average jumped 452.43 points, or 2. 84 percent, from Tuesday to end the day at 16,381.22, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange leapt 33.09 points, or 2.55 percent, to close at 1,332.44.
Local brokers said that gains were extended through the day as a rebound in oil prices underpinned early trade, as did a comparatively weak yen versus the U.S. dollar which gave the market's key export issues a boost, and data from China showing that exports had charted an uptick in March, further lifted the market mood.
Masashi Akutsu from SMBC Nikko Securities Inc. noted along with other strategists that the Japanese currency relinquishing ground to its U.S. counterpart energized the market, with trade data out of China providing more incentives to buy, against a backdrop of oil rising to a four-and-a-half month high on Tuesday in New York.
China-linked shares duly gained traction Wednesday following customs data revealing that exports had increased 11.5 percent from a year earlier, as the country's total value of international trade rose 2 percent.
Based on the latest data release from China's General Administration of Customs, market players are now keenly eyeing China's first-quarter growth data, which will be released on Friday, traders here said.
Murata Manufacturing, widely exposed to markets in China, surged 7.1 percent to 14,250 yen, while electronic component maker TDK gained 3.7 percent to close at 6,150 yen.
Ryohin Keikaku, operator of the Muji chain of household and retail stores, jumped 6.2 percent to 24,690 yen, after stating on Tuesday its year-on-year consolidated net profit increase for the year ended February, was owing to robust sales online and also in China.
Among the market's key exporter sector, Panasonic Corp. advanced 3.3 percent, while Toyota Motor Corp. and Honda Motor Co. accelerated more than 2.5 percent, while Nissan Motor Co. closed the day 3.4 percent higher.
All industry categories on the main section advanced, with notable winners at the end of play comprising insurance, marine transportation and nonferrous metal-linked issues. Trading volume on the main section increased to 2,255.41 million shares from Tuesday's volume of 2,138.32 million shares, with advancing issues outpacing declining ones by 1,683 to 195, while 73 ended the day unchanged. The day's turnover was 2,348.2 billion yen (21.57 billion U.S. dollars).
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