Tuesday, November 29

Fast Retailing powers Japan’s Nikkei to biggest jump in seven months

Article content

TOKYO — Japanese stocks rebounded on Friday, supported by a strong performance from Fast Retailing Co Ltd, while investors appeared to shrug off US inflation print that fueled bets for an oversized Federal Reserve rate hike next month.

The Nikkei share average jumped 3.25% to 27,090.76, its biggest daily percentage gain since March 17. The benchmark broke through the key 27,000 barrier for the first time in a week after four straight sessions of losses.

Article content

The broader Topix index gained 2.35%.

Article content

“The Nikkei fell by more than 1,000 in the previous four days of losses, so we can see buying towards a short-term rebound,” said Maki Sawada, a strategist at Nomura Securities, in a call with reporters.

Sawada added that the market was buoyed by the US turnaround that saw all three major indexes reverse losses after initially falling on the CPI release.

Fast Retailing Co Ltd marked the biggest gain in the Nikkei, up 8.4%, and was by far the largest contributor to the index. The Uniqlo parent company reported record earnings and forecasted higher operating profit for the current fiscal year.

Topix-listed Ryohin Keikaku, which operates the Muji brand of retail stores, gained 7.69% following its earnings report, which also came alongside an upwards operating profit revision.

NTT Data Corp was another big mover in the Nikkei, jumping 5.46% after overnight news that it plans to acquire data analytics firm Aspirent.

All 11 sectors on the Nikkei closed higher. Of the index’s 225 constituents, 224 advanced and just one declined.

NH Foods Ltd, otherwise known as Nippon Ham, fell 0.14%. (Editing by Sherry Jacob-Phillips)