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Tokyo's Nikkei index jumps more than 2.2%

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[TOKYO] Tokyo's benchmark Nikkei index surged more than 2.2 per cent on Tuesday, swiftly recovering from the previous day's losses, with investors encouraged by an apparent hiatus in the Turkey lira crisis.

The benchmark Nikkei 225 index, which lost more than 2 per cent on Monday, rose 2.28 per cent or 498.65 points to close at 22,356.08, snapping a four-day losing streak.

The broader Topix index was up 1.63 per cent or 27.45 points at 1,710.95.

"Bargain-hunting spread around the market as yesterday's selloffs were excessive," said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

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"The yen's decline also helped relieve Japanese investors," Mr Horiuchi told AFP.

But the market is unlikely to continue surging.

"Concerns that the Turkish economic worries will spread to other emerging markets are persistent," SBI Securities said in a commentary.

Tokyo stocks faced massive selling pressure on Monday as the Turkish crisis boosted the yen on safe-haven buying, clouding the outlook for Japanese exporters.

Turkey's central bank has launched a raft of measures aimed at soothing markets although it gave no clear promise of rate hikes, which is what most economists and analysts say are needed to ease the crisis.

On Tuesday, the lira was hovering around 6.8 to the dollar in Asian afternoon trade, compared to record lows of 7.24.

Against the yen, the greenback was changing hands at 110.92 yen compared with 110.63 yen in New York on Monday afternoon.

In individual stocks, Japanese carmakers gained ground. Honda jumped 1.95 per cent to 3,336 yen as Toyota climbed 0.86 per cent to 6,864 yen with Nissan up 0.72 per cent at 1,037.5 yen.

Sony surged 1.80 per cent to 6,024 yen with Panasonic up 1.25 per cent at 1,406.5 yen.

IT investor SoftBank Group was up 3.72 per cent to 10,445 yen.

AFP