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TOKYO: Tokyo’s benchmark Nikkei index gained more than three percent Thursday, tracking global rallies linked to a US Fed rate hike and another pullback in oil prices.

The Nikkei 225 index rose 3.46 percent or 890.88 points to close at 26,652.89, while the broader Topix index added 2.47 percent or 45.76 points to 1,899.01.

“As well as rallies in the US market, hopes that ongoing negotiations between Ukraine and Russia may show progress towards a ceasefire are giving some support” to Japanese share prices, said Ichiro Asai, senior strategist at Daiwa Securities.

The Tokyo market’s gains came after European bourses rallied on optimism over the Russia-Ukraine talks, which also drove global oil benchmark Brent back under $100.

US stocks also finished solidly higher after the closely watched Federal Reserve’s rate hike decision. The dollar fetched 118.80 yen in Asian trade, against 118.73 yen in New York late Wednesday.

Among major shares in Tokyo, SoftBank Group leaped 5.89 percent to 4,785 yen, Sony Group rallied 3.81 percent to 12,270 yen, and Toyota firmed 2.26 percent to 2,036 yen.

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