Tokyo stocks end higher

Tokyo stocks closed higher on Wednesday, rebounding from sharp falls the previous day, with investors treading carefully ahead of a key US inflation report.

The benchmark Nikkei 225 index was up 0.54 per cent, or 142.11 points, to end at 26,478.77, while the broader Topix index edged up 0.29 per cent, or 5.55 points, to 1,888.85. The dollar fetched 137.08 yen, against 136.84 in New York late Tuesday.

“Bargain-hunting took hold, in part due to a rebound from significant losses the previous day,” Okasan Online Securities said. On Tuesday, the Nikkei closed down 1.8 per cent.

The gains in Tokyo came despite losses on Wall Street where “investor concerns grew ahead of the release of consumer price data” in the United States, prompting sell-offs, Okasan said.

Analysts expect that US headline consumer prices rose 1.1 per cent in June, even faster than in May. But a slower increase is expected when food and energy are excluded.

Toyota was up 0.85 per cent at 2,134.5 yen, Uniqlo operator Fast Retailing was up 1.00 per cent at 69,100 yen, while Sony Group was down 0.17 per cent at 11,190 yen. Nikon was up 1.87 per cent at 1,413 yen after the Nikkei business daily said the company will stop making SLR cameras and focus on more profitable mirrorless models.