Nikkei hits 3-week high ahead of Powell testimony

  • Reuters
  • Stock Market News
Nikkei hits 3-week high ahead of Powell testimony
Credit: © Reuters.

TOKYO, Feb 27 (Reuters) - Japan's Nikkei share average hit a three-week high on Tuesday, led by gains in large-cap and exporters' shares as easing in U.S. bond yields overnight improved sentiment ahead of a key testimony by new Federal Reserve Chairman Jerome Powell.

The Nikkei rose 1.1 percent to 22,389.86 .N225 , its highest close since Feb. 5 and almost recovering to its 100-day moving average at 22,419. The broader Topix .TOPX rose 0.9 percent to 1,790.34.

The 50 percent retracement of its fall from late January to early February around 22,536 is seen as the next target.

The Topix Core 30 index .TOPXC of the top 30 companies rose 1.1 percent while Topix Small .TOPXS , consisting of small cap firms, rose just 0.4 percent, as investors took profits. Small cap shares have consistently outperformed since 2015.

Battered manufacturers led gains, with Murata Manufacturing 6981.T rising 2.8 percent, Hitachi 6501.T 2.5 percent and Denso 6902.T 2.4 percent.

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