TOKYO, May 10 — Tokyo stocks closed higher Monday on hopes for economic recovery in the United States, with investors digesting corporate results ahead of the peak of Japan’s earnings season.

The benchmark Nikkei 225 index rose 0.55 per cent, or 160.52 points, to 29,518.34, while the broader Topix index gained 0.99 per cent, or 19.22 points, to 1,952.27.

Japanese share prices were sustained by US recovery hopes after disappointing US jobs data fuelled confidence that fiscal and monetary support will continue, brokers said.

"Expectations for US recovery remain high,” Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP.

"Players are now focusing on corporate results as the earning season is reaching its peak.”

Investors were also weighing other factors including the impact of Covid-19 on the Indian economy, brokers said.

Mitsubishi Heavy jumped 4.79 per cent to ¥3,502 (RM132.04) after its full-year net profit more than halved, but still beat its early estimate.

Panasonic rose 1.69 per cent to ¥1,290.5. Following the closing bell, the firm said full-year net profit fell 27 per cent, but forecast a recovery in the 2021-22 fiscal year.

Japan Airlines fell 0.30 per cent to ¥2,317 after it posted an annual net loss of US$2.6 billion (RM10.6 billion) without releasing a forecast for the current financial year, citing uncertainty around the pandemic.

Hitachi fell 1.55 per cent to ¥5,384 after UK train operators pulled a number of Hitachi high-speed trains from long-distance routes after cracks were discovered.

The dollar fetched ¥108.82 in Asian afternoon trade, against ¥108.58 in New York late Friday. — AFP