Nikkei gains most since 2016 on hopes for BOJ buying; SoftBank Group jumps

SYDNEY, March 24 (Reuters) - Japan's share benchmark Nikkei
climbed more than 7% on Tuesday, logging its biggest one-day
surge in more than four years, boosted by hopes for massive
buying by the Bank of Japan (BOJ) and public pension funds.
The Nikkei average .N225 surged 7.1%, its biggest daily
gain since February 2016, to finish at 18,092.35, its highest
close in 1-1/2 weeks.
The Nikkei's volatility index .JNIV , a measure of
investors' volatility expectations based on option pricing and
considered to be a fear gauge, slid 14.3% to 46.69, further off
a nine-year peak of 60.86 hit a week ago.
U.S S&P 500 stock futures ESc1 last traded 3.1% higher and
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS advanced 4.3% as the Federal Reserve's promise
of bottomless dollar funding eased strains in financial markets
hammered by the coronavirus pandemic. MKTS/GLOB
In addition to the Fed's unlimited QE, hopes for massive
stock buying by the BOJ, public pension funds and buyback by
listed companies supported the Tokyo market, analysts said.
Some think the fact that the BOJ has been buying a
considerable amount of Exchanged Traded Funds in a more random
manner than before makes speculative players hesitant to short
Japanese stocks.
"Since the market has largely priced in the GFC (global
financial crisis) level conditions, we think there is not much
downside left for the Japanese stocks," said Ryota Sakagami,
chief equity strategist at J.P.Morgan Securities Japan.
"Having said, we don't expect a sustained uptrend in share
prices until the COVID-19 outbreak is confirmed to be
contained."
Nikkei heavyweight SoftBank Group Corp 9984.T jumped
19.0%, extending a run that began a day earlier when the tech
conglomerate announced up to $41 billion in asset sales and a
record share buyback to shore up its collapsing stock price.
The broader Topix .TOPX climbed 3.2% to 1,333.10, with all
but four of the 33 sector sub-indexes on the Tokyo Stock
Exchange in positive territory.
Notable gainers included oil and semiconductor-related
companies, with Japan's top oil and gas company Inpex Corp
1605.T advancing 10.8% and chipmaking equipment supplier Tokyo
Electron Ltd 8035.T soaring 18.0%.
Elsewhere, the index of Mothers start-up shares .MTHR
added 8.1%.