(Bloomberg) -- Japan’s Nikkei 225 Stock Average jumped to levels seen before the benchmark had its steepest plunge since October 1987 last week.
The blue-chip gauge climbed 3.4% to close at 36,232.51 in Tokyo and the Topix gained 2.8%, rising after a long weekend as a weaker yen provided support for exporters. Japan’s currency declined 0.3% to 147.65 yen per dollar.
Technology firms including Tokyo Electron Ltd. rose after Nvidia Corp. boosted the Philadelphia Stock Exchange Semiconductor Index. Rakuten Group Inc. was among the biggest gainers on the Nikkei 225 after the conglomerate showed a narrowing operating loss thanks to steady progress in its mobile business.
“The huge selloff peaked last week and investor attention is shifting to fundamentals like corporate profitability,” said Ikuo Mitsui, a fund manager at Aizawa Securities. “Investors are buying stocks amid cheaper valuations.”
Both the Nikkei 225 and the Topix plunged 12% on Aug. 5. They’re still down about 8% since the end of July, when the Bank of Japan raised its benchmark interest rate and unveiled plans to reduce its bond purchases.
The equity gauges have fallen around 13% from their records reached last month, after sliding into a bear market on Aug. 5 when losses exceeded 20%.
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