Sat, 24 Jul 2021

TOKYO, June 22 (Xinhua) -- Tokyo stocks closed sharply higher Tuesday following Wall Street's upbeat lead overnight as concerns about an early rate hike in the United States eased.

The 225-issue Nikkei Stock Average gained 873.20 points, or 3.12 percent, from Monday to close the day at 28,884.13.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 60.08 points, or 3.16 percent, to finish at 1,959.53.

The market rebounded following a plunge the previous day on concerns that the U.S. Federal Reserve could hike its interest rate at an earlier juncture than expected, local brokers said.

They added that this punctuated existing concerns that the Fed might taper its stimulus measures earlier than expected owing to rising inflation.

"Investors are buying back stocks after the market overreacted the previous day," Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co., was quoted as saying.

Other strategists said confidence in buying Japanese stocks had returned and one U.S. rate hike had likely been factored in for the time being.

"After the rebound on Wall Street, investors have confidence to start buying back Japanese shares," Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, said.

"The market has priced in one Fed rate hike for next year, but that seems to be it for now. I don't think it's the case that three or four hikes are going to be priced in," he added.

The yen was sold as investors backed out of safe-haven positions and sought out riskier assets, and the dollar was quoted at 110.48-50 yen compared with 110.26-36 yen in New York and 110.02-04 yen at 5:00 p.m. on Monday in Tokyo.

The euro, meanwhile, fetched 1.1901-1902 dollars and 131.49-53 yen against 1.1912-1922 dollar and 131.44-54 yen in New York and 1.1883-1885 dollars and 130.74-78 yen in late Monday afternoon trade in Tokyo.

All industry categories advanced, with marine transportation, warehousing and harbor transportation service, and rubber product issues comprising those that gained the most.

Mitsui OSK surged 10.2 percent, giving other shippers a boost.

Nippon Yusen, for its part, leapt 10.3 percent by the close, while Kawasaki Kisen jumped 10.2 percent.

Export-oriented issues rose on the yen's retreat, with automakers among Tuesday's winners. Suzuki Motor accelerated 7.4 percent, while Toyota Motor advanced 3.3 percent.

Among other exporters gaining on the yen's softer tone, which boosts their profits when repatriated, Sony added 3.1 percent, while Fujitsu ended the day 5.0 percent higher.

Issues that rose outpaced those that fell by 2,107 to 69 on the First Section, while 17 ended the day unchanged.

On the main section on Tuesday, 1,173.25 million shares changed hands, dropping from Monday's volume of 1,301.08 million shares.

The turnover on the second trading day of the week came to 2,772.88 billion yen (25.09 billion U.S. dollars).

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