Tokyo stocks close higher

TOKYO: Japan’s Nikkei share average marked a record closing high on Tuesday as the outlook for domestic company’s profits improved.

The Nikkei rose 1.32 percent to close at 52,518,08. The index rose 4 percent in the first two sessions of the year, taking a cue from Wall Street’s strength.

The broader Topix also closed at a record high, rising 1.75 percent to 3,538.44.

“The fundamental setting for Japanese equities is strong, so that when the market sees positive cues, the appetite grows,” said Kazunori Tatebe, chief strategist at Daiwa Asset Management.

“These fundamentals are based on the shift from deflation to inflation and corporate governance reform. And domestic investors have become more willing to buy Japanese stocks,” he said.

Wall Street ended higher overnight, with surging financial shares helping lift the Dow Jones Industrial Average to an all-time peak. At the same time, energy firms jumped after a US military strike captured Venezuelan President Nicolas Maduro.

In Japan, refiner Eneos Holdings jumped 5.39 percent, leading the gain in the Topix’s oil and coal products index , which jumped 4.7 percent to become the top performer among the Tokyo Stock Exchange’s (TSE) 33 industry sub-indexes.