Tokyo stocks close up, Nikkei hits fresh 33-year high

TOKYO stocks closed higher on Monday (May 22), with the key Nikkei index hitting a fresh 33-year high, as active buying by foreign investors overwhelmed profit-taking.

The benchmark Nikkei 225 added 0.90 per cent, or 278.47 points, to 31,086.82, while the broader Topix index ended up 0.66 per cent, or 14.21 points, at 2,175.90.

Shares opened slightly lower, but “hopes for further gains for Japanese markets emerged after the G7 Hiroshima summit ended without a hitch, while foreign investors’ buying continued”, Daiwa Securities said.

Polls showing a modest rise in support for Prime Minister Fumio Kishida’s government are also helping boost share prices, reflecting expectations for the world’s third-largest economy’s recovery, analysts said.

The US dollar fetched 137.96 yen, against 137.94 yen in New York on Friday.

Chip-testing equipment maker Advantest rallied 3.02 per cent to 14,330 yen after it unveiled plans to divide its shares to attract more investors, while also announcing dividend payments.

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Insurance firm Tokio Marine Holdings jumped 5.72 per cent to 3,024 yen after announcing an optimistic full-year earnings forecast.

Among other major shares, SoftBank Group rose 0.75 per cent to 5,218 yen, industrial robot maker Fanuc climbed 2.03 per cent to 4,776 yen and shipping firm Mitsui OSK Lines added 1.12 per cent to 3,170 yen.

Japan Airlines gained 2.48 per cent to 2,768 yen. Nippon Steel advanced 0.76 per cent to 2,865 yen. REUTERS