Nikkei jumps most in 21 months on Ukraine hopes, pause in oil surge

The Japanese Nikkei share average surged 3.94% to 25,690.40, with 222 of its 225 component stocks advancing. Tech and auto shares also rallied.

According to Reuters, Japan’s Nikkei rallied the most in nearly 21 months on Thursday, tracking a rebound in global peers as battered market sentiment recovered with Ukraine and Russia looked set to resume diplomatic talks and crude oil prices easing from recent highs.

The Nikkei share average surged 3.94% to 25,690.40, with 222 of its 225 component stocks advancing. The rally came after the benchmark lost 7% over the previous four sessions, touching its lowest since November 2020 at 24,681.74 on Wednesday.

Every Nikkei sector rose on Thursday, with basic material stocks up the most, jumping 6.18%, followed by 4.72% gains for both real estate and consumer cyclicals. Tech and auto shares also rallied.

Stocks related to the so-called pandemic reopening trade also stood out, as new infections in the country continued to decline from a high in early February.

The broader Topix soared 4.04%, after shedding 6.5% in the last four sessions.

A rally in U.S. and European equities spurred investors to rush back to buy Japanese shares as a pause in the surge in commodity prices also provided respite, according to traders.