TOKYO, March 10 (Reuters) - Japan's Nikkei surged the most in nearly 21 months on Thursday, tracking a rebound in global peers as battered market sentiment recovered with Ukraine and Russia looked set to resume diplomatic talks and crude oil prices easing from recent highs.
The Nikkei share average surged 3.84% to 25,667.85 by the midday break, with 220 of its 225 component stocks advancing. The rally came after the benchmark lost 7% over the previous four sessions, touching its lowest since November 2020 at 24,681.74 on Wednesday.
Every Nikkei sector rose on Thursday, with basic material stocks up the most, jumping 5.66%, followed by a 4.63% gain for consumer cyclicals. Tech and auto shares also rallied.
Stocks related to the so-called pandemic reopening trade also stood out, as new infections in the country continued to decline from a high in early February.
The broader Topix soared 3.58%, after shedding 6.5% in the last four sessions.
There is a sense that the rise in oil prices will not last indefinitely, and the rally in U.S. and European equities was spurring investors to rush back to buy Japanese shares, according to traders.
While many uncertainties remain around the Ukraine conflict, the easing of Omicron cases in Japan is making domestic demand-related stocks attractive, they said.
Chemical company Showa Denko was the Nikkei's biggest percentage gainer, up 9.46%.
Nissan Motor was next with a 9.09% rise, with Shin-Etsu Chemical rounding out the top 3 with a 9.03% advance.
Other automakers also climbed, with Suzuki up 8.4% and Toyota rising 4.77%.
Chipmaking giant Tokyo Electron was the Nikkei's biggest gainer by index points, rising 4.56%. Peers Advantest and Renesas added 4.26% and 4.97%, respectively.
Travel company H.I.S. gained 6.26%, and airline ANA Holdings rose 4.87%. (Reporting by Tokyo markets team; Editing by Subhranshu Sahu)
