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Japanese shares track Wall Street higher on Powell's testimony

01/12/2022 | 01:31am EDT

TOKYO, Jan 12 (Reuters) - Japanese shares rebounded on Wednesday, as investors scooped up beaten-down stocks after less-hawkish comments from U.S. Federal Reserve Chairman Jerome Powell helped Wall Street regain ground.

The Nikkei share average closed 1.92% higher at 28,765.66, its biggest daily gain since Dec. 21, while the broader Topix rose 1.64% to 2,019.36, after three straight sessions of losses.

U.S. stocks bounced overnight, with the Nasdaq leading the advance, as investors digested Powell's remarks that interest rates were likely to rise this year, as expected.

"Powell's remarks were not as hawkish as we had expected, and that boosted the U.S. growth stocks and the Japanese market followed suit," said Ikuo Mitsui, fund manager at Aizawa Securities.

"But this momentum may not last for long because we have U.S. consumer price data, and depending on its outcome the U.S. market may decline, which will affect the Japanese market."

U.S. consumer inflation data is due later in the day, with headline CPI seen coming in at a red-hot 7% on a year-on-year basis, boosting the case for an early increase in interest rates.

Nikkei heavyweights led the gains, with chip-making equipment maker Tokyo Electron rising 3.75%, tech-investor SoftBank Group jumping 6.03% and Uniqlo clothing shop owner Fast Retailing adding 1.75%.

Shares that were sold off recently due to their high price-earnings ratios regained as U.S. Treasury yields fell. Sensor maker Keyence jumped 4.98% after losing more than 11% over the past week, while motor maker Nidec rose 2.63% after losing 7% during the same period.

Inpex rose the most on the Nikkei with a gain of 6.48%, and Kawasaki Kisen Kaisha, which climbed 5.03%, was also a top performer.

Eisai, which fell 2.31%, was the worst performer in the Nikkei, followed by Shinsei Bank, losing 1.65%.

(Reporting by Junko Fujita; Editing by Sherry Jacob-Phillips)


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
EISAI CO., LTD. -2.54% 5442 Delayed Quote.-14.50%
FAST RETAILING CO., LTD. -0.98% 59860 Delayed Quote.-7.44%
INPEX CORPORATION 0.13% 1512 Delayed Quote.50.70%
KAWASAKI KISEN KAISHA, LTD. -0.81% 9840 Delayed Quote.43.35%
KEYENCE CORPORATION -1.52% 48750 Delayed Quote.-31.52%
NASDAQ COMP. -2.89% 11202.24 Real-time Quote.-26.27%
NIDEC CORPORATION -2.40% 8204 Delayed Quote.-37.83%
NIKKEI 225 -0.94% 26748.14 Real-time Quote.-6.22%
ON SEMICONDUCTOR CORPORATION -3.20% 54.1 Delayed Quote.-17.71%
S&P 500 -1.29% 3922.98 Real-time Quote.-16.63%
SHINSEI BANK, LIMITED -0.76% 2081 Delayed Quote.11.96%
SOFTBANK GROUP CORP. -1.61% 5191 Delayed Quote.-2.91%
TOKYO ELECTRON LTD -0.80% 58230 Delayed Quote.-11.44%
TOKYO GAS CO., LTD 0.58% 2606 Delayed Quote.25.65%
TOPIX INDEX -0.86% 1878.26 Delayed Quote.-4.91%
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