Tokyo stocks rebounded Tuesday after strong US economic data powered Wall Street to another record close a day after it was hit by Italy uncertainty. "The favourable ISM non-manufacturing data from the US will once again breathe life into stocks," said Toshihiko Matsuno, a senior strategist at SMBC Friend Securities. Tokyo's benchmark Nikkei 225 index rose 0.47 percent, or 85.55 points, to end at 18,360.54, while the broader Topix index of all first-section issues was up 0.70 percent, or 10.24 points, at 1,477.20.
The gains reversed Monday's losses triggered by worries about political instability in the eurozone and beyond after the resignation of Italian Prime Minister Matteo Renzi following a crushing defeat in a constitutional referendum. "Japan was the only major market trading immediately after the (referendum) results, so it feels like it took the blow from investors who wanted to sell for hedging purposes," said Hajime Sakai, a fund manager at Mito Securities. "Now there's buying in relief after seeing global markets calm, or rise rather, putting behind another risk event," he added. Financial stocks were higher, with Mizuho Financial Group up 1.92 percent at 212.3 yen and Nomura Holdings adding 2.97 percent to 695.9 yen. Honda gained 0.84 percent to 3,330 yen and Toshiba rose 3.80 percent to 453 yen.
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