Japanese market rebounds after Powell comments

The Japanese stock market ended its session higher on Thursday, March 3, 2022, following overnight rallies on Wall Street as uncertainty over the course of monetary tightening by the US Federal Reserve eased after statements Fed Chairman Jerome Powell.

Market participants were also watching developments in a second round of ceasefire talks between Russia and Ukraine, which could take place on Thursday.

At the close, the 225-number Nikkei Stock Average was up 184.24 points, or 0.7%, at 26,577.27.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 21.86 points, or 1.18%, to 1,881.80.

A total of 32 out of 33 TSE issues advanced, with the best performing sectors being Shipping (up 5.3%), Oil & Coal Products (up 3.8%), Banks (up 3.4%), insurance (up 3%), non-ferrous metals (up 2.9%). %), and Mining (+2.7%).

Investors have been trying to figure out the future trajectory of U.S. interest rates after Federal Reserve Chairman Jerome Powell said in congressional testimony that he was inclined to back a 25-year rate hike. basis points at the next Fed meeting, instead of the 50 basis point hike recommended by some board members.

Shares in energy-related issues drew buying on expectations that crude oil prices will continue to rise after the Organization of the Petroleum Exporting Countries and its allies said on Wednesday they would not change the group production targets for April. Idemitsu Kosan gained 6.2% and Cosmo Energy Holdings gained 5.2%.

Heavyweight Fast Retailing fell 1.2% after operator of casual clothing chain Uniqlo reported lower domestic sales in February.

CURRENCY NEWS: The Japanese Yen depreciated to the upper range of 115 against the Greenback. The Japanese yen was trading at 115.72-74 to the dollar, weaker from 115.15-16 on Wednesday.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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