Tokyo: Energy firms soared in Tokyo on Thursday, leading a Japanese stock market rally as oil prices were boosted by a surprise OPEC deal to cut crude production.
The Organisation of the Petroleum Exporting Countries, meeting in Algiers, said it had reached an agreement to reduce oil output by 750,000 barrels a day, sending the commodity surging more than five per cent.
Japan Petroleum Exploration rocketed 8.83 per cent to 2,278 yen on the news and energy explorer Inpex piled on 5.69 per cent to 906.1 yen, while JX Holdings jumped 2.97 per cent to 404.8 yen.
"OPEC's decision to curtail production wasn't expected," said Nobuyuki Fujimoto, a senior market analyst at SBI Securities.
"And now crude prices will likely head toward a range of $50 to $60 per barrel from $40 to $50 per barrel, which will ease global deflationary concerns," he told Bloomberg News.
Tokyo's benchmark Nikkei 225 index climbed 1.39 per cent, or 228.31 points, to 16,693.71, while the broader Topix index rose 0.94 per cent, or 12.48 points, to 1,343.25.
Among other firms Takata advanced 2.56 per cent to 360 yen after the Wall Street Journal reported the troubled airbag supplier is in talks with US authorities to resolve allegations of criminal wrongdoing over faulty devices.
The stock surged nearly 12 per cent in the morning before paring those gains.
"US Justice Department investigators have held preliminary discussions with Takata that picked up steam in August," the Journal said, citing people familiar with the matter.
"Prosecutors are currently awaiting a proposal from the company on how to resolve an anticipated criminal case."
Takata is reportedly meeting major automaker clients in Tokyo this week as it looks to settle issues tied to the defect, which has been linked to reportedly as many as 16 deaths and scores of injuries globally.
It has sparked the largest safety recall in automotive history.
Hitachi rose 2.41 per cent to 482.7 yen and Mitsubishi Heavy rose 2.25 per cent to 430.5 yen after the Nikkei business daily reported the two companies are in final talks to integrate their nuclear fuel business with Toshiba.
Toshiba, which jumped nearly five per cent on Wednesday over a higher profit outlook, also added 0.17 per cent to 345.5 yen.
On currency markets the dollar rose to 101.70 yen from 100.70 yen in New York late Wednesday.