Tokyo stocks rose Wednesday with the Nikkei index briefly topping the 17,000 threshold for the first time in roughly three weeks during intraday trading, as sentiment brightened on a recovery in oil prices.
The 225-issue Nikkei Stock Average ended up 32.10 points, or 0.19 percent, from Tuesday at 16,906.54. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 2.75 points, or 0.20 percent, higher at 1,365.78.
Gainers were led by oil and coal product, mining, and financial stock issues.
Tokyo stocks remained in positive territory throughout the day as the Dow Jones Industrial Average hit its highest level this year overnight after oil prices rose to $41.08 per barrel in New York on Tuesday.
"Rising oil prices have produced a calmer tone in the market," said Masashi Akutsu, equity strategist at SMBC Nikko Securities Inc. "Investors are relieved that prices are recovering despite failed weekend negotiations between oil-producing nations to freeze output."
Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management Co., said a degree of optimism has returned to the market as excessive concerns about the U.S. economy have receded.
"Returning confidence in U.S. economic growth is sparking the rise in New York stocks and also lifting Tokyo equities," Ichikawa said, adding that the U.S. Federal Reserve's signaling of a slower pace in interest-rate increases was also supporting sentiment.
Tokyo shares lost steam during the last minutes after Mitsubishi Motors said President Tetsuro Aikawa will hold a press conference Wednesday on the automaker's emission test irregularities.
On the First Section, declining issues outnumbered advancing ones 993 to 834, while 125 ended the day unchanged.
Rebounding oil prices benefited resource-related shares with Inpex rising 16.80 yen, or 2.0 percent, to 869.00 yen and JX Holdings gaining 8.70 yen, or 1.9 percent, to 472.10 yen.
Asahi Group Holdings rose 17 yen, or 0.5 percent, to 3,573 yen on reports Wednesday that the beverage conglomerate is set to withdraw a plan to acquire U.S. sparkling-water maker Talking Rain Beverage Co., having signed a contract a day earlier to purchase four European beer companies that belong to British brewer SABMiller plc.
Isolite Insulating Products climbed 29 yen, or 15.3 percent, to 219 yen after the manufacturer of refractory materials upgraded its profit estimates Tuesday for the year that ended last month due to strong overseas demand.
I-Net gained 41 yen, or 3.7 percent, to 1,149 yen after the service provider engaged in information processing and systems development revised upward Tuesday its earnings forecast for the year that ended March.
Mitsubishi Motors dived 131 yen, or 15.2 percent, to 733 yen on reports of its emission test irregularities.
Trading volume on the main section fell to 2,088.36 million shares from Tuesday's 2,097.97 million shares.
==Kyodo
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