Nikkei index surges 3.2% after US rally

Tokyo’s benchmark Nikkei index surged more than three per cent on Friday after robust gains on Wall Street, despite US inflation data jumping more than expected.

The Nikkei 225 was up 3.22 per cent, or 844.44 points, at 27,081.86 in morning trade, while the broader Topix index rose 2.48 per cent, or 46.05 points, to 1,900.66.

It came after the US market staged a comeback, with the Dow soaring 2.8 per cent and the Nasdaq adding 2.2 per cent, even though fresh data showed high US inflation.

Analysts attributed the gains in New York to short-term moves, as well as rekindled bullish sentiments after recent losses that have made some shares attractive.

After the major overnight gains on Wall Street, the Tokyo market today should also see a large rebound in early trade, brokerage house Monex said in a note.

A key now is whether the Nikkei can maintain the momentum after early trade and try to advance to higher ranges.