Wed, 17 Aug 2022

TOKYO, July 5 (Xinhua) -- Tokyo stocks closed higher Tuesday as buying was supported by the yen's retreat against the U.S. dollar which lifted exporter issues, and technology stocks were snapped up after being beaten down.

The 225-issue Nikkei Stock Average added 269.66 points, or 1.03 percent, from Monday to close the day at 26,423.47.

The broader Topix index, meanwhile, gained 9.41 points, or 0.50 percent, to finish at 1,879.12.

Local brokers said the Japanese yen dipping against the U.S. dollar gave exporters reliant on a cheaper yen to boost profits made overseas.

They added that technology and growth issues also found favor as they were bought back at reasonable valuations.

"Investors took a fresh view on technology and growth stocks as U.S. yields stabled. They were buying back shares that fell too much." Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities, was quoted as saying.

The market mood was also lifted by reports U.S. President Joe Biden may announce the scrapping of tariffs on a wide range of Chinese products, with the move thought to tackle inflation as well as improve ties between the two economic juggernauts.

"The move was a positive factor for the markets on hopes that it may not only tame inflation, but also improve the tense relationship between the United States and China," Masahiro Yamaguchi, head of investment research at SMBC Trust Bank, was quoted as saying.

Gains were capped, however, by concerns over a rising number of COVID-19 cases in Japan recently and the possibility this could lead to the government delaying the restart of its "Go To Travel" subsidy campaign, market strategists said.

By the close of play, insurance, mining and electric appliance issues comprised those that gained the most, and issues that rose outpaced those that fell by 1,007 to 749, while 82 ended the day unchanged.

Nikkei heavyweights guided the market higher, with Uniqlo owner Fast Retailing climbing 4.3 percent, while technology investor SoftBank Group added 1.8 percent.

Tokyo Electron, meanwhile, ended the day 0.4 percent higher.

Exporters gaining on the yen's retreat included Nissan Motor accelerating 0.4 percent, while Canon gained 0.7 percent.

Rakuten Group added 1.6 percent, following the e-commerce firm announcing its subsidiary Rakuten Bank has applied to list on the Tokyo Stock Exchange.

Travel-related issues retreated on concerns over rising COVID-19 numbers, with West Japan Railway slipping 1.4 percent, while Isetan Mitsukoshi Holdings ended the day 1.0 percent lower.

Shipping issues weighed, with Kawasaki Kisen Kaisha sinking 4.5 percent, while Mitsui O.S.K. Lines dropped 2.7 percent.

On the Prime Market on Tuesday, 1,038.18 million shares changed hands, dropping from Monday's volume of 1,097.79 million shares.

The turnover on the second trading day of the week came to 2,412.08 billion yen (17.74 billion U.S. dollars).

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