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Tokyo: Nikkei closes up nearly 5%

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Tokyo's benchmark Nikkei index soared nearly five per cent on Tuesday, buoyed by rallies on Wall Street and hopes for a massive infrastructure plan in the US.

[TOKYO] Tokyo's benchmark Nikkei index soared nearly five per cent on Tuesday, buoyed by rallies on Wall Street and hopes for a massive infrastructure plan in the US.

The Nikkei 225 index rose 4.88 per cent, or 1,051.26 points, to close at 22,582.21, while the broader Topix index was up 4.09 per  cent, or 62.67 points, to 1,593.45.

Tokyo shares opened sharply higher as investors took heart from a gain on Wall Street following the announcement of fresh Federal Reserve emergency lending to support the struggling US economy.

"The Japanese market is rising following rallies in US shares" after the Fed news, said Toshiyuki Kanayama, senior market analyst at Monex.

Tokyo shares spiked higher in late trading as US futures pointed to a positive opening following a report the Trump administration was preparing a sizable infrastructure proposal, brokers said.

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"Today's gain does not necessarily mean a full recovery in the Tokyo market," said Shinichi Yamamoto, a broker at Okasan Securities in Tokyo.

"It's part of short-term adjustment moves but market sentiment is not bad at all," said Mr Yamamoto.

AFP

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