By 0147 GMT, the Nikkei share average .N225 rose 1.2% to 25,648.21 and the broader Topix .TOPX gained 1.21% to 1,848.72.
All three major Wall Street stock indices rallied overnight, a day before an expected interest rate hike by the US Federal Reserve, while oil prices fell 7% on hopes of a an end to the conflict in Ukraine. MKTS/GLOB
Investors expect the US central bank to raise interest rates for the first time in three years by at least 25 basis points amid soaring prices. Traders will also be watching the Fed closely for details on how it plans to end its bond-buying program.
“A drop in oil prices calmed investor sentiment. And investors were hoping that (Federal Reserve Chairman) Jerome Powell would point to a clearer path for rate hikes to ease uncertainty,” Ikuo said. Mitsui, fund manager at Aizawa Securities.
“But volatilities remain elevated and markets are sensitive to any negative signal.”
Chipmaking Equipment Manufacturer Tokyo Electron 8035.T had the highest the Nikkei, with a gain of 1.91%.
Airlines companies .IAIRL.T rose 3.18%, leading gains among the Tokyo Stock Exchange’s 33 industrial sub-indexes, after a report that Tokyo should end COVID-19 countermeasures as scheduled. .
Nintendo game maker 7974.Tup 4.07%, was the top performer among the Topix Top 30 names, followed by retailer Seven & i Holdings 3382.Tup 3.54%.
Drugmaker Daiichi Sankyo 4568.Tdown 2.55%, was the worst performer on the Topix 30, followed by phone company KDDI 9433.Tlosing 0.42%.
(Reporting by Junko Fujita; Editing by Rashmi Aich)
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