TOKYO, July 5 (ABC): Tokyo stocks closed higher Tuesday, with exporters buoyed by a weaker yen, and investors watching speculation that Washington could roll back some tariffs on Chinese goods to battle inflation.
The benchmark Nikkei 225 index gained 1.03 percent, or 269.66 points, to end at 26,423.47, while the broader Topix index climbed 0.50 percent, or 9.41 points, to 1,879.12. The dollar rose to 136.29 yen from 135.59 yen in London and 135.38 yen in Tokyo on Monday.
“With US futures higher and the yen weakening to around 136-yen level after a US market holiday, buybacks of shares dominated” the Tokyo market, Okasan Online Securities said in a note.
The US market was closed on Monday for Independence Day. Global investors are digesting the news that Germany logged its first trade deficit since 1991, partly due to soaring energy prices, fuelling worries over European gas. “Europe remains stuck in the middle between the Russia/Ukraine crisis and a weakening global economy,” said Tapas Strickland of National Australia Bank.
They were also watching talk that the White House is about to remove duties on some of the hundreds of billions of dollars worth of imports from China, with reports saying an announcement could come this week. China’s state-run Xinhua news agency said Treasury Secretary Janet Yellen and Vice Premier Lui He held discussions on Tuesday.
In Tokyo trading, Uniqlo operator Fast Retailing jumped 4.33 percent to 70,290 yen while SoftBank Group gained 1.79 percent to 5,378 yen. Exporters rose with Toyota adding 0.16 percent to 2,116.5 yen, Canon climbing 0.71 percent to 3,106 yen and Nintendo rising 0.35 percent to 58,610 yen.