Nikkei Closes at Nearly 6-month high on Bargain Hunting For Cheap Stocks

On Wednesday, the Nikkei average closed at its highest level in nearly six months as investors bought cheap shares on the hope of an economic recovery, while SoftBank shares jumped thanks to a revenue-sharing deal with Deutsche Telekom.

The Nikkei rose 0.89 percent to 30,181.21 points, its highest level since March 18. The broader Topix index advanced 0.79 percent to 2079.61 points.

Recent declines in Japanese markets have lowered stock values. The latest gains came after Japanese Prime Minister Yoshihide Suga surprisingly announced last week that he would not seek re-election as his party’s leader.

His Liberal Democratic Party holds elections to choose a new leadership on September 29, and the winner is almost certain to become Japan’s next prime minister.

SoftBank’s shares closed up 4.64 percent after it concluded a $7 billion share swap deal with Deutsche Telekom.

SoftBank was the best performer over the Nikkei, followed by Nikon, which rose 4.18 percent, and Rakuten Group, which rose 3.89 percent.