Tokyo stocks end higher after European rally

Tokyo stocks ended higher on Tuesday, with investors taking heart from a lull in the yen’s appreciation against the dollar and overnight rallies by European shares, AFP reported.

The benchmark Nikkei 225 index climbed 1.23 percent, or 316.36 points, to end at 26,138.68, while the broader Topix index gained 0.88 percent, or 16.58 points, to 1,902.89.

The dollar stood at 128.62 yen, against 128.55 yen in London and 127.64 yen in Tokyo late Monday.

The Tokyo market rebounded after a two-day losing streak, with traders “taking comfort in gains in European shares and the yen’s slight shift toward depreciation”, IwaiCosmo Securities said.

Frankfurt, London and Paris stocks climbed on Monday after broadly positive Asian trade, while the dollar rose against its main rivals.

Investors are also paying close attention to how the Bank of Japan’s two-day meeting, which kicked off Tuesday, will unfold. Particular focus is on whether the bank will unveil a fresh tweak to its longstanding monetary easing policy.

“The BoJ still holds sway as markets fret about the BoJ’s highly uncomfortable position, which is likely holding global markets hostage,” said Stephen Innes of SPI Asset Management.

SoftBank Group added 1.86 percent to 5,955 yen, Sony Group jumped 2.44 percent to 11,120 yen and Toyota rose 2.50 percent to 1,863 yen.

Uniqlo operator Fast Retailing spiked 2.77 percent to 74,050 yen.