TOKYO, Jan 20 (Reuters) - Japan's Nikkei share average
rebounded from a five-month low on Thursday, led by Sony and
other video-game makers, after China ramped up its monetary
easing measures to shore up a slowing economy by lowering a set
of key policy rates.
The Nikkei ended up 1.11% at 27,772.93, extending
the morning's gains in the afternoon. About three stocks gained
for every one that fell.
The benchmark survived a sharp mid-morning dip, which pushed
the index to its lowest intraday level since Aug. 23. China's
surprise interest rate cut initially stoked fears of an economic
slowdown, but investors were cheered by the rally in shares in
the rest of the region, market participants said.
With the property downturn seen persisting into 2022 and
fast-spreading Omicron variant dampening consumer activity, many
analysts in China expect more easing measures will be necessary,
despite other major economies appearing set to tighten their
On Wednesday, the Nikkei closed below 27,500 for the first
time since Aug. 20, with Sony and Toyota Motor registering steep
"The Nikkei has dropped to a level where it looks cheap,
tempting investors to come in and buy the dip," said a market
participant at a domestic securities firm.
Video-game maker Konami Holdings rallied 6.20% to
be the biggest percentage gainer in the Nikkei. Sony
added 5.84%, recovering from a nearly 13% slide hit in the
previous session. Nintendo rose 2.8%.
Toyota Motor rose 1.72% following a 5% drop in the
previous session. SoftBank Group advanced 2.12%.
Retailers also gained, with department store operator Isetan
Mitsukoshi Holdings jumping 5.32%, while Uniqlo store
operator Fast Retailing advanced 1.73% to be Nikkei's
biggest gainer by index points.
The broader Topix rose 0.98%. The Topix growth share
index jumped 1.35%, outpacing a 0.63% rise in the value
Japanese chipmakers, however, tracked their U.S. peers
lower, with Tokyo Electron sliding 0.45% and Advantest
dropping 1.57%, making it the biggest drag by index
Shippers were the biggest losers, with Kawasaki Kisen
tumbling 6.51% and Mitsui OSK Lines shedding
5.26% to be the Nikkei's two biggest percentage decliners.
(Reporting by Tokyo markets team; Editing by Sherry
Jacob-Phillips and Uttaresh.V)