Roundup: Nikkei rallies 1.86 pct on crude oil's rebound, weaker yen

The Nikkei stock index reversed two days of losses, rising 1.86 percent as a rebound in crude oil prices lifted investor concerns about the recent glut and the yen' s retreat versus the U.S. dollar contributed to an upbeat market mood on Thursday.

The Nikkei 225 gained 312.74 points to close at 17,108.70, while the broader Topix index of all first-section shares added 1. 37 percent, or 18.62 points, to finish at 1,376.60.

Despite losses on Wall Street overnight following retail sales data coming in below par and a guarded economic outlook from the World Bank, Tokyo stocks rallied as a rebound in oil prices following Wednesday's sell-off saw investors withdraw from currency havens like the Japanese yen, which raises its value versus its counterparts, and opt for risk-on assets like stocks including exporter issues, rather than defensive shares as was the modus operandi over the previous few days.

Traders here said that oil futures jumping around 5 percent in U.S. trading on Wednesday helped settle global jitters about a surplus, which was compounded by the United Arab Emirates' oil minister recently confirming that OPEC would maintain its position on its crude output.

Tatsushi Maeno, from Pinebridge Investments Japan, noted that the rise in oil prices would allow investors some breathing space to consider the future implications of the resource's fluctuations and reposition themselves to deal with lower prices.

"If oil stabilizes at these levels, we could move to the next stage where investors calmly consider just what weaker oil really means for the economy and for company earnings. It's hard to say after just one day, but I'd like to believe we're moving on to this next stage," Maeno was quoted as saying.

In currency markets the U.S. dollar was changing hands at 117. 91 yen in Tokyo, with the yen's retreat giving exporter shares a boost as their firms rely on a weaker yen to augment repatriated profits from overseas. The rise in oil prices also gave energy firms a lift.

Oil exploration giant Inpex Corp., as such, climbed 2.9 percent to 1,242.5 yen, while global engineering and energy provider JGC Corp. leapt 5.5 percent to end the day at 2,410 yen.

Among exporter shares, top automaker Toyota accelerated 1.8 percent to 7,526 yen and consumer electronics behemoth Sony added 2.7 percent to 2,500 yen.

Nikkei heavyweight Fast Retailing, owner and operator of the popular chain of Uniqlo high street apparel stores, rose 2.4 percent to close at 43,000 yen, but it was a bleak day for Skymark Airlines who plummeted 6.9 percent to 363 yen, following reports a capital injection from ANA Holdings to help the ailing carrier avoid bankruptcy had fallen through.

Trading volume on Thursday increased to 2.50 billion shares on the Tokyo Exchange's First Section, up from Wednesday's volume of 2.26 billion shares, with advancing issues outpacing declining ones by 1,513 to 265. Endi