Tokyo stocks close higher on stimulus hopes

TOKYO: Tokyo stocks closed higher on Monday, extending Wall Street rallies on expectations for a US stimulus package and economic recovery in Japan.

The benchmark Nikkei 225 index grew 2.12 percent, or 609.31 points, to end at 29,388.50 -- a fresh 30-year-high -- while the broader Topix index rose 1.75 percent, or 33.00 points, to 1,923.95.

"Investor sentiment was positive on hopes for the passage of the US stimulus package and economic recovery after the lifting of a state of emergency" in Japan, said Yoshihiro Ito of Okasan Online Securities said.

Ichiro Asai of Daiwa Securities added: "This week will see a peak in corporate earnings by major firms, after Sony reported a sound earnings that beat market expectations overall".

Among big companies announcing results is Toyota, which overtook Volkswagen as top-selling automaker in 2020 and will post its earnings on Wednesday, he noted.

The dollar fetched 105.50 yen in Asian trade, against 105.38 yen in New York.

In Tokyo share trading, Renesas Electronics dropped 3.60 percent to 1,203 yen after it announced talks with UK-based Dialog Semiconductor over a "potential plan to purchase part or all of its shares at a price of 67.50 euro per share".

SoftBank Group surged 4.44 percent to 9,485 yen while Uniqlo casual wear operator Fast Retailing gained 1.53 percent to 93,630 yen.

Toyota rose 1.45 percent to 8,037 yen while Honda climbed 1.48 percent to 3,013 yen. Nissan grew 1.09 percent to 629.6 yen.