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Tokyo: Stocks close up more than 2%
[TOKYO] Tokyo stocks closed up more than 2 per cent on Monday, after European and US markets roared last week on strong US data and dovish comments from the US Federal Reserve.
The benchmark Nikkei 225 index added 2.44 per cent, or 477.01 points, to end at 20,038.97 while the broader Topix index jumped 2.81 per cent, or 41.37 points, to 1,512.53.
In recent weeks, investors have aggressively sold down Tokyo shares on general worries about the US economic outlook and earlier falls on Wall Street.
On Friday alone, the Nikkei lost 2.26 per cent.
But investors perked up on the positive news from the US, where the Dow Jones finished up 3.3 per cent on Friday.
"The Tokyo market reacted positively to the dovish statements from Fed chairman Jerome Powell and the gains on the US and European markets last week," Okasan Online Securities said in a commentary.
Looking ahead, investors kept their eyes on trade ties between Washington and Beijing, with delegations from both sides set to hold negotiations on Monday.
In the forex market, the dollar traded at 108.21 yen against 108.44 yen in New York on Friday.
Among major gainers, Uniqlo-operator Fast Retailing rose 1.06 per cent to 53,870 yen. Sony soared 3.62 per cent to 5,370 yen, and Toyota added 3.15 per cent to 6,546 yen.
Takeda, which is drawing close to finishing a takeover of Irish pharmaceutical firm Shire, soared 7.53 per cent to 3,995 yen.