TOKYO: Tokyo stocks closed higher on Tuesday as investors bargain-hunted following sharp falls in the previous session on fears that central bank rate hikes could cause a global economic slowdown.

The benchmark Nikkei 225 index advanced 0.53 percent, or 140.32 points, to close at 26,571.87, while the broader Topix index ended up 0.47 percent, or 8.73 points, at 1,873.01.

The gains came after the Nikkei index plunged 2.7 percent in the previous session, with investors disheartened by selloffs worldwide.

Wall Street stocks fell again overnight as recession fears brought volatility to financial markets, pushing the pound to an all-time low against the greenback and pressuring oil prices.

“Japanese shares rebounded after sharp falls… but declines in the three US indices are weighing on the market,” deterring Tokyo stocks from rising further, said Daiwa Securities senior strategist Shuji Hosoi.

Some investors were seeking dividend payments, Mizuho Securities noted.

Tokyo stocks end 2.7% lower on slowdown fears

Market players are also closely watching US indicators, including consumer confidence and new home sales data due later in the day, analysts said.

The dollar fetched 144.41 yen in Asian trade, against 144.72 yen in New York.

Toyota climbed 1.17 percent to 1,986 yen, airline ANA Holdings rose 1.21 percent to 2,752 yen and industrial robot maker Fanuc gained 1.20 percent to 21,455 yen.

But SoftBank Group ended down 0.71 percent at 5,030 yen and Sony Group lost 0.52 percent to 9,632 yen.

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