Japan stocks rose for the first time this year, following U.S. equities higher, as speculation mounted that a China-fueled global rout has gone too far.
The Topix index jumped 2.8 percent to 1,441.39 at the trading break in Tokyo, the most since Sept. 9, after closing Tuesday at the lowest level in more than three months to cap the worst start to a year on record. The Nikkei 225 Stock Average gained 2.7 percent to 17,682.33.
The Topix’s 14-day relative strength index fell to 24.4 on Tuesday, below the level of 30 that some traders say indicates shares will rise. The stock index lost 9.4 percent in the first six days of the year.
Tire makers, brokerages and car manufacturers led gains among the 33 Topix industry groups. Electronic component makers TDK Corp., Murata Manufacturing Co. and Nidec Corp. jumped at least 3.9 percent after Credit Suisse Group AG boosted its target share price on the stocks.
Oriental Land Co., which operates the Tokyo Disney Resort, added 4.8 percent after the Nikkei newspaper said its operating profit will recover. Nintendo Co. jumped 7 percent on high expectations ahead of a new smartphone game release, analyst Hideki Yasuda at Ace Research Institute told Bloomberg.
Source : Bloomberg