Japan's Nikkei tracks Wall Street higher as Treasury yields fall



TOKYO, Sept 29 (Reuters) - Japan's Nikkei share average rose on Thursday, rebounding from a near three-month low touched in the previous session, tracking Wall Street's sharp gains overnight that was driven by falling Treasury yields.

The Nikkei .N225 gained 0.25% to 26,238.32, by the midday break, after rising about 1% earlier, recovering from a July 1 low of 25,936.36 hit on Wednesday. The broader Topix .TOPX inched down 0.08% to 1,853.63. "The main driver for the Nikkei's gain was an advance of Wall Street overnight, which was fuelled by the Bank of England's action," said Chihiro Ohta, assistant general manager at the investment research and investor services at SMBC Nikko Securities

Wall Street ended sharply higher overnight following its recent sell-off, after Treasuries yields fell, as the Bank of England stepped into the bond market in an attempt to dampen investor fears of contagion across the financial system.

In Japan, Uniqlo clothing shop owner Fast Retailing 9983.T rose 1.63%, becoming the biggest boost to the Nikkei, followed by technology investor SoftBank Group 9984.T , rising 1.17%.

Drug makers .IPHAM.T were the top gainer among the Tokyo Stock Exchange's industry sub-indexes, rising 2.53%.

Eisai shares 4523.T were set to hit their daily limit for a two straight sessions, after the surprise trial success of an experimental Alzheimer's drug developed by the Japanese drug maker and a partner Biogen BIIB.O .

Shionogi & Co 4507.T jumped 4.97%, while Chugai Pharmaceutical 4519.T gained 3.3% and Daiichi Sankyo 4568.T rose 2.23%.

Online shipping platform Rakuten Group 4755.T climbing 5.76% and was the top gainer on the Nikkei, followed by motorcycle maker Yamaha Corp 7951.T , rising 5.22.
Reporting y Junko Fujita; Editing by Rashmi Aich

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