Tokyo's Nikkei closes up more than 2.2%

TOKYO: Tokyo's benchmark Nikkei index closed up more than 2.2 percent Monday, snapping a three-day losing streak as investors took heart from Wall Street rallies and expectations of strong corporate results.

The Nikkei 225 rose 2.25 percent, or 628.60 points, to 28,569.02, while the broader Topix index gained 2.14 percent, or 40.95 points, to 1,953.33.

Tokyo shares rose in early trading on bargain-hunting after all three major US indices finished at all-time highs on Friday, following a strong session in Europe.

Nikkei gains

Machinery and electrical appliance shares were buoyed after the release of stronger-than-expected orders data on Monday morning.

"Expectations for favourable corporate results are growing," Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP.

Investors were also digesting the impact of last week's decision to hold the Tokyo Olympics mostly behind closed doors due to coronavirus fears.

"The no-spectator decision was unfortunate but once the Olympics begin, positive sentiment may spread to the market," Horiuchi said.

Investors largely shrugged off the impact of a virus state of emergency reimposed in Tokyo on Monday, although they "remain cautious about the spread of coronavirus variants", Horiuchi added.

The dollar fetched 110.19 yen in Asian afternoon trade, against 110.03 in New York late Friday.

In Tokyo, Yasukawa Electric, a leading manufacturer of motors and industrial robots, jumped 6.46 percent to 5,760 yen after revising its forecast.

"Yasukawa's upward revision prompted investors to buy shares in the sector," Horiuchi said.

Industrial robot maker Fanuc surged 6.60 percent to 27,535 yen.

Daiichi Sankyo jumped 3.19 percent to 2,309 yen after a report said the pharmaceutical company is preparing to start the final stage of its Covid-19 vaccine trial as soon as this year.

Its rival Eisai lost 1.54 percent to 10,530 yen, despite a report that it has developed a cancer test kit.