Oil prices climbed about $5 a barrel, jolted by a surprise announcement by OPEC+ to cut production further in an effort to support market stability. Oil refiners advanced 3.67%. Oil and gas explorer Inpex jumped 5.51% and top oil refiner Eneos Holdings rose 3.25%.
The Nikkei's recent rally comes after last month's declines when investors hedged against risks of a possible global financial crisis, said Makoto Kikuchi, chief executive officer at Myojo Asset Management. The Nikkei has rebounded from a near-two-month low on March 16 as worries about a financial crisis eased. But rising borrowing costs could affect financing for low-rated companies in the United States and Europe, leading to an economic slowdown, said Kikuchi. "If that happens, Japanese companies would be affected," he said. Meanwhile, heavyweight chip-related firms fell, capping the Nikkei's gains. Advantest lost 4.23% to become the worst performer on the Nikkei. Tokyo Electron lost 2.06% and Screen Holdings fell 3.09%.
(Reporting by Junko Fujita; Editing by Subhranshu Sahu and Sohini Goswami)
