Tokyo’s Nikkei closes up more than 1.3 percent – Gulf Today

Tokyo’s Nikkei closes up more than 1.3 percent – Gulf Today

Tokyo's Nikkei closes up more than 1.3 percent

4 hours ago

Picture used for illustration. File

Tokyo's benchmark Nikkei index advanced more than 1.3 percent on Tuesday after US and European markets bounced back on optimism over post-lockdown economic activity.

The Nikkei 225 index rose 1.33 percent, or 293.10 points, to close at 22,288.14 while the broader Topix index was up 0.62 percent, or 9.55 points, at 1,558.77.

"Investors bought on dips following sizable declines the previous day," Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP.

Sentiment was also supported by gains in US and European stocks on Monday as optimism over easing lockdowns outweighed fears of surging coronavirus infections.

"We expected that virus infection cases would rise again after lockdowns are lifted," said Makoto Sengoku, market analyst at Tokai Tokyo Research Institute.

"The view that the (global) economy will stay on a gradual recovery path still holds -- unless we see drastic spikes in deaths or critically ill patients," he told AFP, adding markets had fallen too much recently on excessive pessimism.

But it was unknown whether stocks would keep up their run with key economic indicators coming up later this week such as the June US payrolls report on Thursday. 

READ MORE