TOKYO, March 17 ― Tokyo shares recovered early losses and closed in positive territory today as investors bought on dips in see-saw trade following a global rout on fears over the coronavirus pandemic.

The Nikkei 225 index, which temporarily fell more than three per cent in morning trade, closed up 0.06 per cent, or 9.49 points, at 17,011.53.

The broader Topix index jumped 2.60 per cent, or 32.12 points, to ¥1,268.46 (RM51.52).

Tokyo shares had opened sharply lower, extending global plunges as interest rate cuts and fresh stimulus measures by central banks and governments failed to dampen fears over the coronavirus pandemic.

Wall Street stocks had their worst day since 1987 yesterday as US President Donald Trump acknowledged the world's largest economy “may be” headed into recession.

“But investors bought on dips following their recent declines,” Shinichi Yamamoto, a broker at Okasan Securities in Tokyo, told AFP.

“Expectations from the Bank of Japan's measures to support the stock market are also encouraging players to buy back.”

Yesterday, Japan's central bank said it would double its annual capacity to purchase exchange-traded funds and Japan real estate investment funds.

Yoshihiro Okumura, general manager at Chibagin Asset Management, warned however that trading is expected to remain volatile as market sentiment is “fragile”.

Japanese shares are also becoming sensitive to news related to the Tokyo Olympics, Okumura also said.

“A postponement is obviously a negative factor,” he added.

The fate of the 2020 Games, scheduled to open in Tokyo on July 24, has been thrown into doubt by the outbreak of the virus, now dubbed a pandemic. Some analysts say the impact of its postponement or cancellation on the Japanese economy would be sizeable.

The dollar fetched ¥106.41 in Asian afternoon trade, against ¥105.92 in New York late yesterday.

In Tokyo, Toyota surged 7.05 per cent to ¥6,360 with Nissan up 2.40 per cent at ¥378.2.

Sony was up 3.55 per cent at ¥5,833, game giant Nintendo was up 5.85 per cent at ¥34,880.

Sumitomo Mitusui Financial rose 0.37 per cent to ¥2,661.5 but Mitsubishi UFJ Financial lost 0.58 per cent to ¥392.2. ― AFP