Tokyo stocks rebound on Asian gains

TOKYO: Tokyo stocks closed higher Monday as investors cheered gains by Asian tech firms, which rebounded from last week when Japanese shares were under pressure.

The benchmark Nikkei 225 index added 1.78 percent, or 480.99 points, to 27,494.24, while the broader Topix index rose 1.83 percent, or 34.46 points, to 1,915.14.

The market began on a strong footing, keeping the momentum from Friday when Wall Street enjoyed healthy gains.

Investors were also encouraged by gains in other Asian markets, with Hong Kong's Hang Seng Index firming 1.32 percent, and Shanghai's Composite Index rising.

"A technical rebound (after losses in Tokyo last week) seems to have encouraged buying," SMBC Nikko Securities said in a note.

"Rises of US futures contracts as well as firming Asian shares buoyed the market," the brokerage added.

Okasan Online Securities said a broad range of shares attracted investors, particularly "economically sensitive stocks" such as steel, chemical and paper as well as high-tech and semiconductor shares.

The brokerage added that the market seemed to have digested "excessive worries", although concerns about the pandemic remain, along with speculation on when the US Federal Reserve may start reducing its stimulus.

Political uncertainty in Japan also weighed on the market after a ruling party veteran backed by Prime Minister Yoshihide Suga lost to a political novice in a mayoral election.

Suga faces record-low approval ratings with the public frustrated at his government's handling of the pandemic.

Meanwhile, the global market shifted focus to Fed Chair Jay Powell's address at this year's Jackson Hole symposium, which will be held online from Friday.

Investors will be watching closely, including for "whether he too will play up near-term downside economic risks due to the spread of the Delta (coronavirus) variant," said Ray Attrill of National Australia Bank.

Among major shares, Nippon Steel rose 0.34 percent to 1,909 yen, while its smaller rival JFE Holdings surged 2.15 percent to 1,472 yen.

Industrial robot maker Fanuc added 2.36 percent to 23,170 yen.

Tokyo Electron, a major producer of tools to build semiconductors, firmed 2.68 percent to 44,090 yen.

Sony Group surged 3.58 percent to 11,000 yen. Toyota added 3.44 percent to 9,222 yen. Panasonic rose 2.12 percent to 1,250 yen.

Construction equipment maker Komatsu added 0.63 percent to 2,616 yen.