Tokyo: Stocks close higher supported by US rallies

[TOKYO] Tokyo stocks closed higher on Tuesday, supported by rallies in US shares to record levels due to euphoria over a US-China trade deal and upbeat economic data.

The benchmark Nikkei 225 index gained 0.47 per cent, or 113.77 points, to 24,066.12 - the highest since early October. The broader Topix index was up 0.59 per cent, or 10.33 points, at 1,747.20.

Tokyo stocks opened higher after all three main US stock indices finished at record highs as investors cheered strong Chinese factory output data and the detente in the trading relationship between Washington and Beijing.

"The reduction in uncertainty both with respect to the US-China trade landscape as we head into 2020 and in the UK post last Thursday's election, has been enough to generate sizeable beginning-of-week gains for global equities," said Ray Attrill, strategist at National Australia Bank.

Conservative leader Boris Johnson romped to a massive parliamentary majority in Thursday's election, removing some of the uncertainty over Britain's future exit from the European Union.

Mr Attrill also pointed to what he called an "eye-popping" report from the US National Association of Home Builders showing a substantial improvement in confidence in December.

"Although we don't have fresh trading factors, buying sentiment remains positive," said Shinichi Yamamoto, a broker at Okasan Securities in Tokyo.

"A further gain is in sight before year-end," Mr Yamamoto told AFP.

The dollar fetched 109.55 yen in Asian afternoon trade, against 109.60 yen in New York.

Among major shares in Tokyo, Toyota rose 0.42 per cent to 7,818 yen and Panasonic gained 0.96 per cent to 1,046.5 yen with Nintendo up 0.13 per cent at 45,520 yen.

Elsewhere, SoftBank Group rallied 1.52 per cent to 4,524 yen and market heavyweight Fast Retailing, the Uniqlo casual wear operator, jumped 0.97 per cent at 67,640 yen.

AFP