TOKYO, Jan 27 (Reuters) - Japanese stocks took their cue from Wall Street on Wednesday morning, rebounding to touch a 1-1/2 week high after U.S. indexes shrugged off a rout in Chinese markets to gain more than 1 percent on a brief recovery in crude prices.
The Nikkei share average touched its highest level since January 15 and was 2.3 percent higher at 17,092.33 during midmorning trade.
“In the year so far the market has been characterized not only by sharp selling off but also by volatility and chaotic movements,” said Stefan Worrall, director of Japan equity sales at Credit Suisse.
“Today’s market action is encouraging, as was Monday‘s, but it doesn’t necessarily signal that this is the end of the selling or the beginning of the rebound.”
The yen saw relatively little movement as the Nikkei surged, possibly because of lingering concerns over oil prices.
Crude futures dropped around 2 percent during Asian trade on Wednesday morning, resuming a slide toward $30 per barrel as profit-taking wiped out some of the gains that helped push Wall Street higher on Tuesday.
Market participants noted investors were looking toward the outcome of policy meetings from the U.S. Federal Reserve on Wednesday and the Bank of Japan on Friday.
Shares of Softbank Group Corp jumped as much as 9.1 percent after Sprint, which is majority owned by the Japanese telecom, posted smaller-than-expected quarterly losses and raised its earnings outlook.
The broader Topix gained 2.6 percent to 1,396.06 with all of its 33 sub-indexes in positive territory.
The JPX-Nikkei Index 400 rose 2.5 percent to 12,575.39. (Reporting by Joshua Hunt; Editing by Eric Meijer)