Tokyo stocks close higher on US gains

The benchmark Nikkei 225 index rose 1.22 percent, or 328.51 points, to 27,172.00, while the broader Topix index gained 0.95 percent, or 17.99 points, to end at 1,908.05.

The dollar stood at 125.38 yen, off from 125.59 yen seen overnight in New York. On Wednesday, the Japanese currency fell to a 20-year low at around 126.30 yen to the dollar.

“Excessive worries over US monetary tightening eased following rallies in the three major US indexes,” Okasan Online Securities said in a note.

An easing of US yields and positive corporate earnings in the United States brightened global markets, with the Nasdaq surging two percent and the Dow ending one percent higher.

The fact “that foreign investors were net buyers of Japanese shares in the past two weeks also gave a sense of relief to the market,” senior strategist Ichiro Asao of Daiwa Securities said in a commentary.

Among major Tokyo shares, Fast Retailing gained 2.14 percent to 59,550 yen.

After the market close, the Uniqlo operator said it had slightly raised its annual net profit forecast for the year to August while remaining cautious about the Covid situation in China, its second-largest market after Japan.

Tech firms were higher, with chip-making equipment manufacturer Tokyo Electron adding 1.83 percent to 56.710 yen and chip-testing equipment maker Advantest closing up 1.76 percent at 8,670 yen.

Commodities-linked shares were also winners, with oil developer Inpex rallying 3.82 percent to 1,575 yen and Sumitomo Mitsui Mining climbing 4.00 percent to end at 6,418 yen.