Photographer: Akio Kon/Bloomberg

Japan Shares Gain as Global Stocks Rebound on Stimulus Optimism

  • Insurers and steel producers lead gains while exporters rise
  • Prime Minister Abe says he will take measures after Brexit

Japanese shares rose, led by financial companies and steel producers, as global equities rebounded amid optimism policy makers will enact measures to stem the fallout from Britain’s decision to leave the European Union.

The Topix index gained 1.9 percent to 1,247.69 at the close in Tokyo. The Nikkei 225 Stock Average climbed 1.6 percent to 15,566.83. The yen rose 0.5 percent to 102.25 per dollar after sliding 0.7 percent on Tuesday. After Prime Minister Shinzo Abe and the Bank of Japan met Wednesday morning, Abe told reporters he will mobilize all possible measures following the Brexit vote, while BOJ Governor Haruhiko Kuroda said the central bank can add funds to the market as needed.

“The panic selling in global markets has eased,” said Chihiro Ohta, a senior strategist with SMBC Nikko Securities Inc.

Japan’s top decision makers have expressed concerns over any exaggerated price swings in financial markets after the Topix tumbled by the most since the aftermath of the March 2011 earthquake on Friday. Abe said he wants his finance minister and the central bank governor to watch markets more closely and that he’s concerned about market risks.

Most Stable

“At the moment, Japanese politics has the most stability,” SMBC’s Ohta said. “The U.K. is almost without government, and the U.S. is in the middle of its presidential election. Mr. Abe alone is doing well.”

Insurers and iron and steel producers led gains among the 33 Topix industry groups. Exporters rallied, with electrical-appliance makers and car manufacturers contributing the most to the Topix’s advance.

  • Toyota Motor Corp., the world’s largest automaker, added 2.9 percent while Sony Corp. increased 4.8 percent.

  • The Topix Retail Trade Index slid 0.5 percent, after a 4.9 percent two-day advance, as data Wednesday showed retail sales didn’t increase in May from the previous month. Seven & i Holdings Co., an operator of convenience stores, fell 0.9 percent.

  • Idemitsu Kosan Co. tumbled 6.5 percent after descendants of the oil refiner’s founder said they oppose a merger with Showa Shell Sekiyu KK. Showa Shell slumped 2.8 percent as the companies led declines on the Topix Oil & Coal Index.

“The political situation in Europe will probably not be resolved for years to come,” said Ken Peng, an Asian investment strategist at Citi Private Bank in Hong Kong. “So there’s no reason why the rest of the world cannot just carry on.”

Futures on the S&P 500 Index added 0.2 percent. The underlying equity gauge climbed 1.8 percent on Tuesday, the most since March 1. The MSCI All Country World Index gained on Wednesday after rising 1.7 percent the previous day.

Before it's here, it's on the Bloomberg Terminal.