Tokyo stocks close higher after US rallies

TOKYO: Tokyo stocks closed higher on Wednesday as investors took heart from fresh records on Wall Street despite thin trade due to the summer holidays.

The benchmark Nikkei 225 index rose 0.65 percent, or 182.36 points, to end at 28,070.51, while the broader Topix index gained 0.92 percent, or 17.80 points to 1,954.08.

The Dow and S&P 500 ended at new records Tuesday as industrial companies and commodities producers advanced after the Senate passage of a $1.2 trillion infrastructure package.

Japanese shares tumble

"Investors welcomed the US rallies and the US package," Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP.

"But concerns over the coronavirus situations in Japan capped positive sentiment."

The number of Covid-19 patients with severe symptoms has hit a record high in Tokyo as daily infections surge in Japan.

Trading was thin as Japan is in its annual "Obon" summer holiday this week, when many investors and companies take vacations.

Gains narrowed also on profit-taking, Okasan Online Securities added.

Investors are also closely watching the decline in Prime Minister Yoshihide Suga's approval rating in recent opinion polls ahead of the general election later this year that will decide the fate of his administration.

"Players are concerned about the current political uncertainty, but they also expect to see fresh stimulus measures because of the decline ahead of elections," Horiuchi said. The dollar fetched 110.68 yen in Asian trade, against 110.58 yen in New York late Tuesday.

In Tokyo, tyre company Bridgestone surged 5.34 percent to 5,140 yen after upgrading its annual forecast.

SoftBank Group fell 1.75 percent to 6,711 yen after the investment giant said its net profit dropped by 39 percent in the first quarter.

Uniqlo casual wear operator Fast Retailing jumped 2.12 percent to 75,600 yen while Toyota gained 0.98 percent to 9,973 yen.