TOKYO (AFP) – Japan’s blue chip stocks surged in morning trade Monday, rebounding after eight straight losing sessions.
The benchmark Nikkei 225 jumped 2.64 per cent or 995.62 points, to 38,663.03 in early trade.
The broader Topix index surged 2.49 per cent, or 67.10 points, to 2,766.64.
The robust gains came after global investors sold high-tech and semiconductor shares last week, causing the Nikkei to slide.
But players returned to buying in New York on Friday after fresh data showed that US inflation was moderating, firming expectations that the US Fed may start cutting rates in September.
“The Tokyo market is expected to trend higher today after US shares advanced last week,” brokerage house Monex said.
Players are also turning their focus to the Bank of Japan’s two-day policy meeting through Wednesday, when it may raise interest rates.
The central bank is moving to scale down its massive bond purchase programme in an effort to normalise its monetary easing policy.
The dollar stood at JPY153.72, sharply lower from JPY153.75 seen Friday in New York.
