TOKYO, Aug 23 (Reuters) - Japan's Nikkei share average
jumped on Monday after plumbing an eight-month low in the
previous session, as auto-related stocks rebounded from losses
stoked by Toyota Motor's announcement that it would slash its
global production by 40% in September.
The Nikkei rose 1.7% to 27,485.90 by 0205 GMT, as
bargain-hunters rushed into buying after it hit its lowest level
since late December on Friday.
The broader Topix gained 1.97% to 1,917.78, led by a
3.5% surge in the transport equipment index.
The sub-index fell more than 10% last week - a massive drop
that typically happens only during extreme market turmoil such
as the one in early 2020 - after Toyota's announcement
The fall provided bargain-hunting opportunities for
investors who think the impact of Toyota's output cut would be
short-lived and that last week's selling was overdone.
Toyota rebounded 3.2%, while Denso jumped 6.8% and
Nissan Motor rose 3.4%.
All of the TSE's 33 industry sub-indexes were in the black,
with highly volatile shippers shares up 4.3% after
last week's sharp drop.
Electric machinery shares also marked a stellar
gain of 2.8%, with Keyence, Sony < 6758.T>, and Hitachi
rising 4.1%, 3.8% and 2.7% respectively.
On the other hand, SoftBank Group lost 1.5% after
its plan to sell British chip designer ARM to Nvidia Corp
hit a major hurdle as a UK regulator found it could
damage competition and weaken rivals, and required a further
(Reporting by Hideyuki Sano; Editing by Subhranshu Sahu)