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Japan stocks rebound to end bullish second quarter

Japan stocks rebound to end bullish second quarter

Japanese stocks rebounded Tuesday, closing out a sterling second quarter with a bang.
The benchmark Nikkei 225 stock average jumped 174.97 points, or 1.8 percent, to 9,958.44, briefly climbing above the psychologically key 10,000 level. The broader Topix index added 1.6 percent to 929.76.
Over the last three months, the Nikkei soared 23 percent in its best quarterly performance since 1995. The index is up 12 percent since the beginning of the year.
Sentiment was bullish from the outset after solid gains overnight in the U.S. and Europe.
The Dow Jones industrial average rose 1.1 percent to 8,529.38 in New York, pulled higher by rising crude oil prices. Investors snapped up energy, industrial and materials stocks as they sought out areas that would benefit from an economic recovery.
Tokyo players followed suit, sending shares of trading houses and commodities companies higher. Oil prices jumped above $73 a barrel to eight-month highs Tuesday in Asia.
Japan Petroleum Exploration Co. soared 7.2 percent to 5,350 yen, Nippon Oil Corp. jumped 2.7 percent to 567 yen, and Itochu Corp. added 2.8 percent to 672 yen.
Analysts also cited a surge of "window-dressing" purchases as investors looked to beef up their portfolios before the end of the quarter.
An unexpected rise in Japanese household spending added to the optimism. Although the unemployment rate in May rose to a five-and-a-half-year high, household spending edged up 0.3 percent from a year earlier, the government said Tuesday.
J.Front Retailing Co. added 6 percent to 461 yen, and Internet shopping mall operator Rakuten Inc. closed up 5.1 percent to 58,100 yen.
Investors now await a series of global indicators over the next day, including the Bank of Japan's "tankan" survey of business sentiment, Chinese manufacturing data and a key U.S. employment report.
"These results will set the stage for where stocks go from here," said Kenichi Hirano, equity general manager at Tachibana Securities in Tokyo.
In currencies, the dollar was trading at 95.44 yen from 96.10 yen late Monday. The euro stood at $1.4110 from $1.4078.


Updated : 2021-07-24 06:19 GMT+08:00