Stocks staged a strong rally Monday, with buying sentiment boosted by the latest sharp upturn on Wall Street.
The Nikkei 225 average soared 381.22 points, or 1.82 percent, to end at 21,281.85, its best finish since Dec. 17. On Friday, the key market gauge fell 239.08 points.
The Topix, which covers all first-section issues on the Tokyo Stock Exchange, ended 24.67 points, or 1.56 percent, higher at 1,601.96. It gave up 12.52 points Friday.
Stocks surged from the outset on hefty purchases induced Wall Street’s exuberance last Friday that was a reflection of renewed expectations for progress in U.S.-China trade negotiations, market sources said.
After the end of two days of ministerial trade talks between the U.S. and China in Beijing on Friday, the White House announced that negotiations would continue in Washington.
In the broad-based rally on the Tokyo market, “cyclical shares, in particular, drew buying,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management Co.
Ichikawa also pointed out that investors rushed to buy shares related to China on speculation that Washington will refrain from raising tariffs on Chinese imports on March 1, the deadline for the current trade war truce.
Mitsuo Shimizu, chief strategist at Aizawa Securities Co., attributed Monday’s jump to buybacks, saying Japanese stocks are lagging behind European and U.S. equities.
Rising issues far outnumbered falling ones 1,908 to 180 in the first section, while 41 issues were unchanged.
Volume fell to 1.190 billion shares from 1.277 billion Friday.
Among the upbeat China-linked issues were industrial robot producers Yaskawa Electric and Fanuc, and construction machinery maker Komatsu.
Bridgestone shot up 4.93 percent after announcing a share buyback plan. Other rubber and petrochemical products makers also attracted robust purchases.
Fast Retailing and Softbank Group were firmer.
By contrast, Tokyo Gas and Olympus sank on selective selling.