SYDNEY, May 27 (Reuters) - Japan's stock benchmark Nikkei rose to a three-month high on Wednesday, with financial stocks leading gains, as speculative short-covering during afternoon trade helped the index recoup losses seen earlier in the day.
The Nikkei average .N225 gained 0.7% to 21,419.23, its highest closing level since February 28.
"Today's rally is largely a short-covering move by macro hedge funds. It's happening not only in Japan but also in the U.S. market," said Masanari Takada, cross-assets strategist at Nomura Securities.
E-Mini futures for the S&P 500 ESc1 were last quoted 0.7% higher in late Asian trade.
The broader Topix .TOPX added 1% to 1,549.47, its highest finish since February 27, with all but five of the 33 sector sub-indexes on the Tokyo exchange closing in positive territory.
Bucking the overall market, semiconductor-related companies came under pressure amid rising tensions between the United States and China, with Tokyo Electron Ltd 8035.T and Advantest Corp 6857.T shedding 3.6% and 2.7%, respectively.
U.S. President Donald Trump said late on Tuesday he was preparing to take action against China this week over its plan to impose national security laws on Hong Kong, but gave no further details. companies also fell as investors locked in profits from recent gains, with West Japan Railway Co 9021.T losing 2.8% and ANA Holdings Inc 9202.T declining 2.0%.
Air and land transport companies rallied earlier this week as investors cheered Japan's decision on Monday to lift the coronavirus-induced state of emergency nationwide. turnover of Tokyo's main board was 2.88 trillion yen ($26.8 billion), a one-month high.
($1 = 107.5300 yen)
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