Tokyo: Nikkei closes up 1.7% on bargain hunting

[TOKYO] Tokyo's benchmark Nikkei index jumped 1.70 per cent on Tuesday as a cheap yen and gains on Wall Street prompted investors to buy back following recent declines.

The Nikkei 225, which snapped a six-day losing streak on Monday, added 378.28 points to close at 22,573.66, while the broader Topix index rallied 2.14 per cent, or 32.62 points, to 1,555.26.

Japanese shares had opened higher on the backdrop of rallies in US stocks and a cheaper yen against the dollar, brokers said.

The Nasdaq powered to a fresh record on Monday fuelled by Microsoft's potential takeover of TikTok.

The US dollar fetched 106.09 yen in Asian afternoon trade, against 105.95 yen in New York.

"There was widespread bargain-hunting on the market following the recent declines," said Yoshihiro Okumura, general manager at Chibagin Asset Management.

"But trading remains cautious as investors are concerned about the impact of the coronavirus pandemic on domestic businesses," he told AFP.

Last week, Tokyo called for restaurants, bars and karaoke parlours to shut earlier to help contain the coronavirus as the Japanese capital reported a record number of new infections.

Brokers also said investors were closely watching corporate results as Japan is in the middle of its earnings season.

Japan Airlines soared 8.20 per cent to 1,813 yen despite announcing a deep quarterly net loss of US$885 million as the coronavirus pandemic halted air travel around the world.

Sony jumped 4.47 per cent to 8,686 yen. Following the closing bell, Sony said its quarterly net profit rose more than 50 per cent.

SoftBank Group fell 0.73 per cent to 6,881 yen after news reports said it failed to declare 40 billion yen (S$519.1 million) in taxable income.

AFP