Tokyo stocks close higher on bargain-hunting

Economy

Tokyo | AFP

Tokyo stocks recovered early losses and closed higher Monday on bargain-hunting with investors shifting their focus to corporate results, which get into full swing this week.

The benchmark Nikkei 225 index rose 0.36 percent, or 105.60 points, to 29,126.23, while the broader Topix index gained 0.17 percent, or 3.17 points, to 1,918.15.

Shares had opened lower in Tokyo with investors cautiously assessing the impact of a virus state of emergency in the capital and other areas of Japan including the western hub Osaka.

The government imposed the new restrictions on Sunday, requesting the closure of businesses such as department stores and bars.

“But investors bought on dips following recent declines,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

“Investors are now paying attention to earnings. Several companies that already released quite favourable results faced selling pressure, surprisingly,” Horiuchi said.

Okasan Online said that “the Tokyo market will likely remain range-bound” as investors digest earnings and look for promising shares.

The dollar stood at 107.84 yen in Asian afternoon trade against 107.89 on Friday in New York.

Japan Airlines rallied 4.58 percent to 2,302 yen following reports that it is moving to purchase Chinese low-cost carrier Spring Airlines, aiming to capitalise on demand from Chinese tourists after the pandemic.

Honda rose 1.76 percent to 3,290 yen after announcing that it will aim to produce only electric or fuel cell vehicles by 2040.

Sony Group, which will announce full-year earnings on Wednesday, fell 1.18 percent to 11,700 yen.

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AFP