Tokyo shares close higher on positive China data

TOKYO: Tokyo shares recovered from earlier losses Wednesday and ended higher, with the market supported by China’s positive economic data.

The benchmark Nikkei 225 index climbed 0.26 percent, or 70.97 points, to close at 27,516.53, while the broader Topix index rose 0.23 percent, or 4.53 points, to 1,997.81.

The Tokyo market started lower “following losses on Wall Street where the prospect of prolonged monetary tightening by the US Federal Reserve weighed on once again,” Iwai Cosmo Securities said in a note.

But it was later “supported by improvements in Chinese economic indicators”, it added.

Data showing decade-high Chinese factory activity last month spurred hopes for economic recovery.

Investors are also awaiting US ISM economic activity figures for manufacturing due later in the day, analysts said.

The dollar fetched 136.37 yen in Asian trade, against 136.13 yen in New York on Tuesday.

In Tokyo trading, steel firms were higher, prompted by expectations for economic recovery in China.

Tokyo shares close slightly higher

Nippon Steel jumped 1.90 percent to 3,095 yen while JFE Holdings soared 2.84 percent to 1,734 yen.

Chip-linked Tokyo Electron gained 1.84 percent to 47,570 yen but Uniqlo operator Fast Retailing lost 1.11 percent to 26,600 yen.