Home ›› 02 Mar 2022 ›› Stock
Tokyo shares ended higher on Tuesday as tech shares advanced following overnight gains on the US Nasdaq index, while Ukraine continued to dominate headlines.
The benchmark Nikkei 225 index added 1.20 per cent, or 317.90 points, to end at 26,844.72, while the broader Topix index climbed 0.54 per cent, or 10.24 points, to 1,897.17. The dollar stood at 115.07 yen, compared with 114.93 yen seen Monday in New York.
The Tokyo market stayed comfortably in positive territory throughout the day as investors were heartened by a 0.4 per cent gain on the tech-rich Nasdaq index overnight on Wall Street, although the Dow fell 0.5 per cent.
Investors' aversion to risk softened after US shares avoided sharp drops, analysts said, despite earlier concerns that broad financial sanctions against Russia and its banking institutions could dent the global economy.
"Excessive caution receded over financial sanctions against Russia, leading the Nikkei to start the day with sharp gains," Okasan Online Securities said in a note.
High-tech issues drove up the entire market and caused the Nikkei to temporarily shoot above 27,000, it said.
Worries over Russia's invasion of Ukraine still weighed on the market, however.
"Once early buying subsided, the market's mood shifted. Investors wanted to monitor the ceasefire negotiations, causing the market to lose a sense of direction," Okasan said.
Market players also took a wait-and-see stance ahead of the release of ISM data for US manufacturing activities later on Tuesday and Fed Chair Jerome Powell's Congressional appearance slated for Wednesday.
Among major shares, industrial robot maker Fanuc gained 1.25 per cent to 21,420 yen. Tokyo Electron, which produces tools to make semiconductors, rose 3.37 per cent to 57,650 yen.
Tech investor SoftBank Group advanced 2.09 per cent to 5,232 yen. Fast Retailing, which operates the Uniqlo brand, surged 2.36 per cent to 63,290 yen.
Sony, which also spent most of the day in the black, ended down 0.30 per cent to 11,775 yen.
