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Nikkei closed at the highest level in 3 weeks, supported by bargain hunting and the rise of Wall Street

The Nikkei index closed at a three-week high on Wednesday as investors bought back plunging stocks and a boost from an overnight rally on Wall Street lifted market sentiment.

The Nikkei ended the session up 0.33 percent, recording 32,333.46 points, the highest level since August 10, after continuous gains for the third consecutive session.

The broader Topix index rose 0.43 percent to 2,313.38 points.

Wall Street closed sharply higher overnight after a decline in the monthly number of new jobs cemented expectations of a halt to the Federal Reserve’s interest rate hikes.

Chipmaking equipment maker Tokyo Electron rose 0.97%, giving the Nikkei the biggest boost. Advantest, a maker of chip testing equipment, added 0.7 percent and electronic component maker Kyocera added 2.33 percent.

The banking sector rose 1.41 percent, becoming the best performing sub-sector among the 33 sub-sectors of the Tokyo Stock Exchange.

Toyota Motor Corp rose 1.03 percent after the world’s largest automaker by sales volume said it would resume operations at assembly plants in Japan on Wednesday after a production system failure halted domestic production.

The performance of the shares of retail companies was weak, with the decline in the shares of operators of department stores. Takashimaya fell 1.49 percent, the worst performer for the Nikkei. Food store operator Seven & I fell 1.6 percent, and Uniqlo brand owner Fast Retailing fell 0.63 percent, placing the biggest pressure on Nikkei.

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