Japan’s Nikkei broke its five-day losing streak on Thursday, gaining 0.56% to 28,471.61 by the midday break as investors await the U.S. Federal Reserve’s Jackson Hole conference for insight on its response to the ongoing inflation hike.
“Investors made a bet that the market would rebound after this big event is over, even if there are hawkish comments from the Fed meeting,” Ikuo Mitsui, fund manager at Aizawa Securities, explained. Mitsui added that while higher rates may be introduced to curb rising rates, inflation will likely persist, which could lead to a declining market next month.
Among the day’s winners was drug maker Daiichi Sankyo, gaining 5% to become the biggest riser on the index. Mitsubishi Corp rose 1.89% after deciding to apply for a stake in the Russian entity that took ownership of the Sakhalin-2 liquefied natural gas project, while chip-making equipment maker Tokyo Electron managed a 0.75% rise.
Nuclear-related stocks were also among the strong performers, with IHI up by 2.34%, Hitachi Rosen gaining 2.16%, and Mitsubishi Heavy Industries rising by 1.82%. Tokyo Electric Power Company Holdings gained 0.79% in its second straight session of increase.