Tokyo's Nikkei closes up on bargain-hunting

TOKYO: Tokyo's benchmark Nikkei index closed up nearly 1.4 percent on Tuesday as investors bought on dips following two days of profit-taking.

The Nikkei 225 index rose 1.39 percent, or 391.25 points, to 28,633.46, while the broader Topix index gained 0.56 percent, or 10.35 points to 1,855.84.

"Shares rebounded easily today following two days of declines, which showed the current strength of the market," said Toshikazu Horiuchi, a broker at Iwai Cosmo Securities.

"Sentiment is likely to remain strong for the time being as hopes for stimulus policies are still high," he told AFP.

Investors were watching headlines linked to Japan's vaccination schedule, analysts said, after Taro Kono, a high-profile minister for administrative and regulatory reforms, was tasked with coordinating the vaccine rollout.

"The market is focusing on how smoothly vaccines can be distributed in Japan," Horiuchi said.

So far, no vaccines have been approved in Japan, which expects to begin its innoculation programme around late February.

The dollar fetched 103.99 yen in Asian afternoon trade, against 103.65 yen in London on Monday.

In Tokyo, chip-linked shares were higher on strong demand for semiconductors. Chip-making equipment maker Tokyo Electron rallied 2.10 percent to 44,130 yen, and testing equipment maker Advantest was up 4.21 percent at 9,140 yen.

Automakers were higher on hopes for US measures to support the industry. Nissan jumped 3.91 percent to 544.3 yen and Honda rose 1.68 percent to 2,833.5 with Toyota up 0.94 percent at 7,708 yen.

Tyre makers were also among gainers. Bridgestone jumped 3.34 percent to 4,053 yen with Yokohama Rubber up 2.15 percent at 1,612 yen on bargain-hunting.