Japan’s Nikkei rises for a third day on optimism about China

Japan’s Nikkei index closed higher for the third consecutive session on Tuesday, as optimism over the end of the lockdown imposed to combat COVID-19 in China, Japan’s main trading partner, outweighed the disappointing financial results.

The Nikkei index witnessed volatile trading, before closing up 0.42 percent at 26,659.75 points, after declining for a short period in early trading, before rising with other regional markets after the opening of Chinese stocks on the rise.

Energy stocks led the gains among the Nikkei sub-indices, which jumped 3.62 percent after crude oil prices rose overnight on expectations of a rebound in Chinese demand.

The broader Topix index rose 0.19 percent to 1,866.71 points.

Sentiment was boosted after Shanghai achieved the long-awaited achievement of three consecutive days of no new COVID-19 cases detected, which could lead to the start of lifting restrictions.

Among the 225 stocks on the Nikkei index, 124 rose versus 97 declined, with four remaining stable.

The biggest loser was Asahi Holdings, which fell 10.86 percent after reporting an 83 percent drop in quarterly operating profit. Shares of rival Kirin Holdings fell 4.25 percent.

The advertising and advertising giant’s share, Dentsu Group, also fell, after disappointing financial results as well, as the stock lost 6.16 percent.