By Kevin Buckland
TOKYO, March 22 (Reuters) - Japan's financial stocks
joined a global rally on Wednesday to help lift the Nikkei share
average by 1.9%, its biggest gain in two months, even as
investors braced for a crucial U.S. Federal Reserve policy
decision later in the day.
Nomura Holdings and Daiwa Securities each
posted gains of about 4.5% as investors took heart from
assurances by U.S. Treasury Secretary Janet Yellen that deposits
at smaller lenders will be safeguarded.
Elsewhere, online company Rakuten Group surged
nearly 6% after Reuters reported that the company plans an
initial public offering of its banking arm as soon as next
month.
A sharp weakening in the yen overnight also buoyed
the overall market, with automakers getting a particular boost.
Energy shares rallied amid strong gains in crude oil prices,
while advances for U.S. tech shares helped lift Japanese chip
stocks.
"Worries about the financial sector have retreated one
notch, and as a result the Japanese stock market is moving to
retrace what it lost on Monday," said Maki Sawada, a strategist
at Nomura Securities.
The Nikkei rose 1.9%, its biggest gain since Jan.
18, to end the day at 27,466.61.
Financials gained 2.6%, the second-best performing sector
after energy's 2.7% rally.
The broader Topix added 1.7% to 1,962.93.
Japanese markets were closed on Tuesday for a public
holiday.
Money markets now lay 83% odds on a quarter-point hike, up
from closer to a coin flip earlier in the week. Nissan led gains among automakers, surging 3.9%.
Honda advanced 2.9%, while Toyota added 1.9%.
Chipmaking equipment giant Tokyo Electron gained
2.3%, and chip-testing equipment maker Advantest rose
2.8%.
Uniqlo store operator Fast Retailing was the
Nikkei's biggest support, contributing 49 points to the index's
total 521-point advance with a 1.7% rise.
Startup investor SoftBank Group was another notable
winner, gaining 2.8%.
Of the Nikkei's 225 components, 214 rose versus 10 that fell
and one that was flat.
(Reporting by Kevin Buckland; Editing by Nivedita Bhattacharjee
and Sonia Cheema)
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