TOKYO, Aug 15 (Reuters) - Japan's Nikkei share average
jumped on Monday to its highest in more than seven months,
supported by Wall Street's gains at the end of last week, and as
upbeat corporate earnings lifted risk appetite and prompted
investors to scoop up beaten-down stocks.
The Nikkei rose 1.14% to 28,871.78, extending gains
to a second session, while the broader Topix advanced
0.6% to 1,984.96.
Wall Street closed higher on Friday, as signs that inflation
may have peaked in July increased investor confidence a bull
market could be underway and spurred the S&P 500 and the Nasdaq
to post their fourth straight weekly gain.
"There was optimism in the U.S. equities market in the
previous session. That has promoted investors to make bets on
stocks that had been sold off but reported strong earnings,"
said Ikuo Mitsui, a fund manager at Aizawa Securities.
Investors appeared to show scant response to data that
signalled Japan's economy rebounded at a slower-than-expected
pace in the second quarter from a COVID-induced slump.
"Investors are now trying to gauge whether the market has
recovered, or there would be another retreat. But today it seems
they are making positive bets."
Shares of Pan Pacific International Holdings surged
11.48% after the operator of discount store Don Quijote raised
its annual profit forecast.
Drugstore chains also traded higher, with Matsukiyococokara
rising 5.64% after the company reported gains in its
quarterly profit and announced a share buyback.
Peer Sundrug jumped 10.77% after increasing its
dividend payout forecast.
Daiichi Sankyo surged 14.52% after U.S. drugmaker
Seagen said an arbitrator had ruled in favour of the
Japanese drugmaker over an agreement between the two companies
for using its drug technology.
Daiichi Sankyo was the second largest boost to the Nikkei,
after technology investor SoftBank Group, which rose
Uniqlo clothing store owner Fast Retailing climbed
Among losers, shares of Snow Peak tanked 14.8% after
the camping gear retailer cut its annual profit forecast.
(Reporting by Junko Fujita; Editing by Sherry Jacob-Phillips
and Subhranshu Sahu)