Tokyo stocks end nearly 3% higher after US rebound

Tokyo stocks surged on Tuesday after Wall Street shares rebounded, with soft US data fuelling speculation that Fed officials may slow efforts to hike interest rates.

The benchmark Nikkei 225 index jumped 2.96 per cent, or 776.42 points, to close at 26,992.21, while the broader Topix index added 3.21 per cent, or 59.31 points, to 1,906.89.

The Tokyo market remained buoyant throughout the day, as global investors pushed up equities after fresh US data from the Institute for Supply Management (ISM) indicated softer manufacturing activities. The slow US ISM manufacturing report on business evoked concerns about global recession and inflated hopes that the Federal Reserve may pivot its monetary policies, Daiwa Securities said.

Exporters and raw material-related shares attracted buyers, the brokerage said, adding that energy shares also benefited from speculation about possible production cuts.