TOKYO, May 18 ― Tokyo shares closed higher today on bargain-hunting as investors shrugged off news of a shrinking economy in Japan and ongoing worries over coronavirus infections.
The benchmark Nikkei 225 index jumped 2.09 per cent, or 582.01 points, to end at 28,406.84, while the broader Topix index added 1.54 per cent, or 28.88 points, to 1,907.74.
Investors sought bargains after recent falls, including a 0.92 per cent loss in the Nikkei index yesterday, while the yen slowed its appreciation against the dollar, giving some support to the market.
“Last week, we saw sharp falls (of Tokyo shares). And now we are seeing a natural reaction to that,” said Makoto Sengoku, senior equity market analyst at Tokai Tokyo Research Institute.
“Japanese shares fell rather sharply yesterday too. Then US shares... were seen as relatively calm. So that was seen as positive for the market,” he added.
“The sense of security spread among investors in the afternoon session with stable US futures,” Okasan Online Securities said.
Shortly before the Tokyo market opened, the Cabinet Office said Japan's economy contracted 1.3 per cent in the three months to March, broadly in line with market expectations.
“As for the GDP, I think people knew what was coming,” Sengoku said.
“It was to be expected under the coronavirus pandemic. I believe the market has it broadly factored in.”
Among blue-chip stocks, Uniqlo operator Fast Retailing jumped 3.29 per cent to ¥88,930 (RM3,365) while SoftBank Group gained 2.56 per cent to ¥8,647.
Automakers were higher with Toyota rising 1.97 per cent to ¥8,819, Honda climbing 3.33 per cent to ¥3,346 and Nissan advancing 0.33 per cent to ¥539.6.
But Nintendo gave up gains and fell 1.40 per cent to ¥61,830.
The dollar fetched ¥109.14 in Asian trade against ¥109.20 in New York yesterday. ― AFP
