Tokyo stocks snap four-day losing streak

TOKYO: Tokyo stocks snapped a four-day losing streak on Monday, taking a positive lead from record highs on Wall Street as US tax cuts edged a step closer.

The Nikkei 225 index rose 1.55 percent, or 348.55 points, to close at 22,901.77. The broader Topix index was up 1.36 percent, or 24.43 points, at 1,817.90.

"Investors are welcoming progress in the US tax cut talks," said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

Wall Street's three main indexes pushed to fresh records Friday as key congressional holdouts on a tax cut proposal signalled their support, pushing the long-awaited measure closer to the finish line.

"Investors are also buying on dips following four days of decline," Horiuchi told AFP.

And Okasan Online Securities said in a commentary: "Japan stocks were backed by the yen."

The dollar traded at 112.65 yen, against 112.63 yen in New York late Friday, and well up from 112.18 yen yen in Tokyo Friday.

Banks were higher with Mitsubishi UFJ jumping 2.89 percent to 821.6 yen and Sumitomo Mitsui Financial rising 1.54 percent to 4,866 yen.

Rakuten edged up 0.10 percent to 1,026 yen after the online commerce giant faced heavy selling last week on its plan to set up its own mobile carrier in Japan.

Obayashi rose 0.29 percent to 1,380 yen despite reports investigators plan to raid it and three other major contractors over a bid-rigging scandal on the nation's Maglev train project.

Toyota gained 2.81 percent to 7,162 yen and Panasonic was up 0.36 percent at 1,674.5 yen.