Japanese stocks surged to a fresh 1-1/2 week high on Wednesday as exporters gained on a retreat by the yen, while appetites for riskier assets were lifted by upbeat Chinese trade data offering hope that the region’s largest economy was stabilising.
The Nikkei share average had its biggest gain since March 2, climbed 2.8 per cent to 16,381.22, its highest close this month.
“Recent buying and selling has been closely tied to yen movements, but I think the market has finally started to discount negative factors like yen appreciation and negative earnings growth,” said Hiroki Takashi, chief strategist at Tokyo’s Monex Group.
“Investors have recognised that this market reached its bottom.”
The safe-haven yen slid from recent peaks against the US dollar after solid gains in oil prices helped underpin risk appetites, boosting the outlook for Japan’s corporate profits.
Appliance and home goods exporter Panasonic Corp ended the day 3.3 per cent higher. Auto exporters Toyota Motor Corp and Honda Motor Co Ltd both gained more than 2.5 per cent, while Nissan Motor Co Ltd climbed 3.4 per cent.
Sun Corp ended the day 16.7 per cent higher after announcing its Israeli subsidiary company Cellebrite had signed a partnership agreement with European law enforcement agency Interpol.
International media previously reported Cellebrite may have helped the US Federal Bureau of Investigation access the contents of a locked iPhone used by a man involved in a mass killing in San Bernardino, California.
Ono Pharmaceutical Co Ltd rose a fifth straight day, soaring 6.3 per cent to 5,722 yen after Credit Suisse raised its target price to 6,200 yen a share from 5,000 yen.
The broader Topix climbed 2.6 per cent to end the day at 1,332.44 with each of its 33 subindexes in positive territory.
The JPX-Nikkei Index 400 rose 2.7 per cent to 12,035.02.