Nikkei closes at a one-week high, tracking Wall Street

Japan’s Nikkei closed at a one-week high on Thursday, tracking the strong close on Wall Street Wednesday night, while the yen’s slide against the dollar raised hopes for better prospects for local businesses.

The Nikkei jumped 2.31 percent to 28,065.28 points, its highest closing level since Aug. 31. The index recorded its biggest daily gain in four weeks.

The broader Topix index ended a series of losses that lasted six consecutive sessions and jumped 2.19 percent to 1957.62 points.

The dollar hovered near a 20-year high on Thursday, after jumping to a 24-year peak against the yen overnight, as loose Japanese monetary policy contrasted with the hawkish Federal Reserve policy.

Shares of Fast Retailing, owner of Uniqlo stores, rose 3.33 percent, providing the biggest boost to the Nikkei index, followed by Tokyo Electron, which rose 2.17 percent.

Air conditioning maker Daikin Industries advanced 3.61 percent, and SoftBank Group rose 2.44 percent.

The aviation sector rose 3 percent after Japan eased border controls to combat the pandemic. ANA Holdings rose 2.5 percent and Japan Airlines gained 3.6 percent.

Shares of department store companies also advanced, with Isetan Mitsukoshi shares rising 4.06 percent and J.K. Front Retailing 3.33 percent.