Japan's Nikkei rebounds on softer yen after sharp sell-off
TOKYO, Oct 1 (Reuters) -Japan's Nikkei share average rose more than 1% in early trade on Tuesday, rebounding from a nearly 5% drop in the last session, as a softer yen supported exporters including automakers.
The Nikkei .N225 was up 1.09% to 38,333.6, as of 0008 GMT, and the broader Topix .TOPX had risen 0.88% to 2,669.14.
The Nikkei fell 4.8% on Monday in reaction to a sharply stronger yen after perceived monetary policy hawk Shigeru Ishiba won a leadership contest to become the country's prime minister. .T
The dollar rose overnight after Federal Reserve Chair Jerome Powell adopted a more hawkish tone on the economy, leading traders to pare bets that the U.S. central bank will cut rates by 50 basis points again at its next meeting. FRX/
A softer yen tends to help exporter shares as it increases the value of overseas profits in yen terms when firms repatriate them to Japan.
Uniqlo-brand owner Fast Retailing rose 1.71% and provided the biggest boost to the Nikkei. Chip-related heavyweights rose, with Tokyo Electron 8035.T and Advantest 6857.T gaining 1.76% and 1.54%, respectively.
Toyota Motor 7203.T climbed 1.67% and Honda Motor 7267.T gained 2.45%.
Reporting by Junko Fujita; Editing by Subhranshu Sahu
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