Nikkei Soars as Real Estate and Banking Lead Japan Stock Rally
Japanese stocks closed higher on Wednesday (March 18), with the Nikkei 225 up 3.15% in Tokyo. The gains were driven by gains in the real estate, banking, and textile sectors, as market sentiment improved and options volatility decreased.
The most notable gainers came from Tokyo Electric Power, which surged 16.30% to 713.40. Mitsubishi Materials rose 14.28% to 5,603, while Mitsui O.S.K. Lines rallied 11.76% to 7,014, hitting a five-year high.
On the downside, Chugai Pharmaceutical fell 3.56% to 8,986. East Japan Railway fell 1.44% to 3,702, and Rohm weakened 1.41% to 3,293. Overall, market breadth was strong, with 3,168 stocks advancing versus 479 declining, and 163 unchanged.
Risk indicators also eased, with Nikkei Volatility (the implied volatility of Nikkei 225 options) falling 22.35% to 33.00, indicating a shrinking option risk premium after the rally. This movement occurred amid a correction in energy prices: May WTI fell 3.00% to US$92.66, and May Brent fell 1.78% to US$101.58, while April gold edged up 0.12% to US$5,014.40.
In the currency market, USD/JPY fell 0.18% to 158.75, and EUR/JPY fell 0.17% to 183.25. US Dollar Index futures edged down 0.05% to 99.29, indicating limited dollar movement amid sharp gains in Japanese equity markets. (alg)
Source: Newsmaker.id