Japanese shares track Wall Street higher on Powell’s testimony

Japanese shares rebounded on Wednesday, as investors scooped up beaten-down stocks after less-hawkish comments from U.S. Federal Reserve Chairman Jerome Powell helped Wall Street regain ground.

The Nikkei share average closed 1.92% higher at 28,765.66, its biggest daily gain since Dec. 21, while the broader Topix rose 1.64% to 2,019.36, after three straight sessions of losses, Reuters reported.

U.S. stocks bounced overnight, with the Nasdaq leading the advance, as investors digested Powell’s remarks that interest rates were likely to rise this year, as expected.

U.S. consumer inflation data is due later in the day, with headline CPI seen coming in at a red-hot 7% on a year-on-year basis, boosting the case for an early increase in interest rates.

Nikkei heavyweights led the gains, with chip-making equipment maker Tokyo Electron (8035.T) rising 3.75%, tech-investor SoftBank Group (9984.T) jumping 6.03% and Uniqlo clothing shop owner Fast Retailing adding 1.75%.

Shares that were sold off recently due to their high price-earnings ratios regained as U.S. Treasury yields fell. Sensor maker Keyence jumped 4.98% after losing more than 11% over the past week, while motor maker Nidec rose 2.63% after losing 7% during the same period.