Tokyo shares up by break as energy firms surge

Energy firms soared in Tokyo Thursday, leading a Japanese stock market rally as oil prices were boosted by a surprise OPEC deal to cut crude production.

The Organization of Petroleum Exporting Countries, meeting in Algiers, said they had reached an agreement to reduce oil output by 750,000 barrels, sending the commodity surging more than five percent.

Japan Petroleum Exploration rocketed 9.65 percent on the news and energy explorer Inpex piled on 6.73 percent, while JX Holdings jumped 3.28 percent.

"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 1.42 percent, or 233.78 points, to 16,699.18 by the break, while the broader Topix index rose 0.93 percent, or 12.39 points, to 1,343.16.

Among other firms Takata rose 2.56 percent after the Wall Street Journal reported the troubled airbag supplier is in talks with the US authorities to resolve allegations of criminal wrongdoing over faulty devices.

The stock surged nearly 12 percent in the morning before paring those gains.

"US Justice Department investigators have held preliminary discussions with Takata that picked up steam in August," the Journals 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 as many as 16 deaths and scores of injuries globally.

It has sparked the largest safety recall in automotive history.

Hitachi rose 2.63 percent and Mitsubishi Heavy rose 2.30 percent 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 percent on Wednesday over a higher profit outlook, fell back 2.12 percent.

On currency markets the dollar rose to 101.33 yen from 100.70 yen in New York late Wednesday.

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