TOKYO: Japan’s Nikkei share average ended nearly 3% higher on Wednesday, led by chip and artificial intelligence-related stocks, as concerns over the economic impact of surging oil prices subsided.
The Nikkei rose 2.87% to 55,239.4, snapping a four-day losing streak, while the broader Topix was up 2.49% at 3,717.41.
“The equity market has been closely linked with oil prices. Today, the market eased excessive worries about the outlook of oil prices and scooped up heavyweight technology stocks,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
Oil prices fell more than $2 per barrel on Wednesday to pare some of Tuesday’s sharp gains after the Iraqi government and Kurdish authorities reached a deal to resume oil exports via Turkey’s Ceyhan port.
The Nikkei’s gains were further supported by an overnight rally on Wall Street, Yasuda said.
Shares of Delta Air Lines and American Airlines Group, both sensitive to oil price movements, rebounded after recent weeks of losses.
In Japan, chip-testing equipment maker Advantest jumped 6.73% and AI-technology investor SoftBank Group rose 5.81%. Fibre optic cable maker Fujikura rose 4.47%.
Shares of Mitsui OSK Lines jumped 11.76% after Reuters reported that Elliott Investment Management has taken a “significant” stake in the Japanese shipping company.
Mitsubishi Materials jumped 14.28% after local media reported the maker of copper products will participate in a project between Japan and the United States to develop rare earths, which will be agreed at a summit meeting of the two nations.
Japan’s Prime Minister Sanae Takaichi is due to meet U.S. President Donald Trump in Washington D.C. at a leaders’ summit on March 19.
Tokyo Electric Power jumped 16.3% after local media reported dozens of investment funds and companies, including KKR and Bain Capital, are showing interest in investing in the utility.
Drugmaker Chugai Pharm fell 3.56%, making it the largest percentage loser on the Nikkei.
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