Tokyo: Nikkei closes up more than 3.1% on US bounceback

[TOKYO] Tokyo's benchmark Nikkei index surged more than 3 per cent on Tuesday, rebounding from the previous session as Wall Street bounced back from a rout last week.

The Nikkei 225 index, which lost more than 3 per cent on Monday, rose 3.12 per cent or 873.20 points to close at 28,884.13. The broader Topix index jumped 3.16 per cent or 60.08 points to 1,959.53.

Tokyo shares rallied from the outset, quickly recovering from the previous day's rout after US shares bounced back, brokers said.

"Players overreacted yesterday. So they bought back comfortably today," said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

"But trading is expected to remain cautious for now," Mr Horiuchi told AFP, adding that investors will closely monitor moves on Wall Street.

Investors were focusing on Federal Reserve Chair Jerome Powell's testimony in the US Congress later in the day, brokers said.

The dollar fetched 110.45 yen in Asian afternoon trade, against 110.18 yen in New York late Monday.

Among major shares in Tokyo, Uniqlo operator Fast Retailing jumped 3.13 per cent to 81,350 yen on bargain-hunting.

Sony also rose 3.13 per cent to 10,870 yen with Toyota up 3.34 per cent at 9,960 yen.

Nissan rose 3.74 per cent to 542.7 yen after its CEO reportedly pledged to return to the black this year during its shareholders' meeting.

Pharmaceutical firm Eisai, which has recently been overwhelmed by buy orders after the United States approved the Alzheimer's drug it developed with Biogen, jumped 4.60 per cent to 12,710 yen.

Advertising giant Dentsu, which is heavily involved in organising the Tokyo Olympics, gained 1.99 per cent to 3,840 yen after organisers said up to 10,000 fans will be allowed at Tokyo Olympic events.

AFP