Tokyo’s Nikkei closes up more than 1.3pc

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

TOKYO, June 30 — Tokyo’s benchmark Nikkei index advanced more than 1.3 per cent today after US and European markets bounced back on optimism over post-lockdown economic activity.

The Nikkei 225 index rose 1.33 per cent, or 293.10 points, to close at 22,288.14 while the broader Topix index was up 0.62 per cent, 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 yesterday 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.

“Since expectations are high, markets are prone to disappointment,” Sengoku said.

Investors shrugged off weak economic data released from Japan early today, including rising unemployment and poor factory production for May.

“The negative figures were all factored in,” Horiuchi said.

In individual stocks trade, telecoms and investment giant SoftBank Group rallied 1.30 per cent to ¥5,450 (RM216.52) while Uniqlo casual wear operator Fast Retailing gained 1.74 per cent to ¥61,700.

NTT rose 0.47 per cent to ¥2,515.5 after the Nikkei business daily reported the telecom group would enter the renewable energy market.

The group will invest more than ¥1 trillion (US$9.3 billion) by 2030 to boost capacity and establish its own transmission network, the daily said.

Nissan gained 1.14 per cent to ¥399.2 and Toyota edged up 0.04 per cent to ¥6,762.

The dollar was trading at ¥107.76 in Asian afternoon trade compared with ¥107.56 in New York yesterday afternoon. — AFP

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