Tokyo stocks close higher, Nikkei logs largest rise in 21 months

TOKYO, March 10 (Xinhua) -- Tokyo stocks closed higher on Thursday, with the Nikkei index logging its highest point gain since June 2020 after briefly surging by more than 1,000 points.

Investors welcomed an overnight drop in crude oil futures that had been climbing amid the Ukraine situation.

The 225-issue Nikkei Stock Average rose 972.87 points, or 3.94 percent, from Wednesday to reach 25,690.40.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange ended 71.14 points, or 4.04 percent, higher at 1,830.03.

Issues of every industry category gained ground, led by marine transportation, air transportation and consumer credit issues.

Trading volume on the main section increased to 1,504.03 million shares from Wednesday's 1,500.51 million shares.

The Nikkei index briefly gained 1,002.78 points, or over 4 percent, finishing with its biggest point gain since June 16, 2020.

Shares surged from the beginning of the trading day as concern over rising oil prices was offset by reports that the Organization of the Petroleum Exporting Countries and its allies may raise production targets, easing worries over the negative impact on the global economy.

"A temporary lull in the upward trend of crude oil futures eased fears over soaring inflation, while an overnight rally on Wall Street also prompted investors to buy back shares," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

Sentiment was also boosted by significant gains in Chinese equities markets, Ichikawa said.

Market players sought a wide range of shares in active trading, scooping up battered stocks after the benchmark Nikkei lost over 1,800 points over the past four trading days.

However, markets are expected to go through a fluctuation, with investors focused on talks between Russia and Ukraine and the outcome.

On the First Section, advancing issues outnumbered declining ones 2,140 to 30, while 10 finished the day unchanged.

Air transportation issues surged as decreasing oil futures boosted hopes that damage to the sector would be limited.

ANA Holdings gained 5.5 percent, while Japan Airlines jumped 6.7 percent.

Export-oriented issues climbed following the yen's weakening against the U.S. dollar.

Electronic components manufacturers TDK rose 3.9 percent, and Kyocera increased 4.0 percent.