Tokyo stocks close higher, rebounding from rout

Tokyo stocks closed higher on Tuesday as investors bargain-hunted following sharp falls in the previous session on fears that central bank rate hikes could cause a global economic slowdown.

The benchmark Nikkei 225 index advanced 0.53 per cent, or 140.32 points, to close at 26,571.87, while the broader Topix index ended up 0.47 per cent, or 8.73 points, at 1,873.01.

The gains came after the Nikkei index plunged 2.7 per cent in the previous session, with investors disheartened by selloffs worldwide.

Wall Street stocks fell again overnight as recession fears brought volatility to financial markets, pushing the pound to an all-time low against the greenback and pressuring oil prices.

Japanese shares rebounded after sharp falls... but declines in the three US indices are weighing on the market, deterring Tokyo stocks from rising further, said Daiwa Securities senior strategist Shuji Hosoi.

Some investors were seeking dividend payments, Mizuho Securities noted.

Market players are also closely watching US indicators, including consumer confidence and new home sales data due later in the day, analysts said.

The dollar fetched 144.41 yen in Asian trade, against 144.72 yen in New York.

Toyota climbed 1.17 per cent to 1,986 yen, airline ANA Holdings rose 1.21 per cent to 2,752 yen and industrial robot maker Fanuc gained 1.20 per cent to 21,455 yen.

But SoftBank Group ended down 0.71 per cent at 5,030 yen and Sony Group lost 0.52 per cent to 9,632 yen.