Japan’s Nikkei earns the most in almost 7 weeks after Fed meeting

TOKYO, Dec.16 (Reuters) – Japan’s Nikkei index surged Thursday to mark its biggest gain in nearly seven weeks, after the US Federal Reserve’s decision to end bond buying during the pandemic was in line with investors’ expectations.

The Nikkei stock average (.N225) rose 2.13% to close at 29,066.32, its biggest daily percentage rise since November 1. The larger Topix (.TOPX) rose approximately 1.46% to 2,013.08.

Wall Street ended sharply higher overnight after the U.S. central bank announced it would end its bond purchases during the pandemic in March and start raising interest rates up to three times l ‘next year.

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“Investors were relieved after confirming that the Federal Reserve was in no rush to raise rates and whet their appetite for risk,” said Seiichi Suzuki, chief equity market analyst at the Tokai Tokyo Research Institute .

“But whether that momentum is going to last until next week or after, that’s another question.”

Tech-heavy stocks followed a 3.7% jump in the Philadelphia Semiconductor Index (.SOXX). Chip-related Tokyo Electron (8035.T) and Advantest (6857.T) rose 3.11% and 5.37% respectively. Robot maker Fanuc (6954.T) gained 2.34%.

Canon (7751.T) jumped 6.52% after the office equipment maker raised its annual dividend forecast.

Shipping stocks (.ISHIP.T), up 4.87%, were the top winners among 33 sub-indices in the exchange industry after Nomura Securities raised target prices for all three larger shippers.

Nippon Yusen (9101.T) gained 5.6%, Mitsui OSK Lines (9104.T) increased 3.87% and Kawasaki Kisen (9107.T) gained 5.43%.

Shinsei Bank (8303.T) lost 7.15% to post a clear gain in the previous session. The action has been volatile after online financial conglomerate SBI Holdings (8473.T) finalized a takeover bid last week for the bank to take a 47.77% stake. Read more

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Editing by Rashmi Aich and Devika Syamnath

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