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Tokyo: Stocks close up more than 2%

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[TOKYO] Tokyo stocks closed up more than 2 per cent on bargain-hunting Tuesday, recovering much of the previous day's losses, but investors remained cautious on signs of a possible global economic slowdown.

The benchmark Nikkei 225 index rose 2.15 per cent, or 451.28 points, to end at 21,428.39 while the broader Topix index gained 2.57 per cent, or 40.53 points, at 1,617.94.

Analysts said that investors were buying back shares after a sharp fall of more than three per cent the previous day.

But trading remained nervous, Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP.

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Market voices on:

"We need to watch key economic indicators to be released this week, which will give us the materials to set a market direction."

US stocks ended flat on Monday amid lingering unease over global growth, while traders shrugged off news that an investigation found no evidence of collusion between US President Donald Trump's election campaign and Russia.

The dollar fetched 110.09 yen in Asian trade, slightly up from 109.96 yen in New York late Monday.

In Tokyo trade, Nintendo jumped 4.76 per cent to 31,900 yen after The Wall Street Journal reported the video game maker plans to launch two new Switch console models as early as this summer.

Bluechip exporters gained ground as Toyota rose 2.26 per cent to 6,760 yen with Sony climbing 3.0 per cent to 4,769 yen.

The banking sector, which suffered heavy losses the previous day, recovered moderately, with Mitsubishi UFJ Financial up 1.48 per cent at 561.6 yen and Sumitomo Mitsui Financial up 2.29 per cent at 4,005 yen.

Pharmaceuticals were higher, with Daiichi Sankyo soaring 4.75 per cent to 4,452 yen, Astellas 3.24 per cent to 1,684.5 yen and Takeda 2.41 per cent to 4,710 yen.

AFP