Tokyo stocks surged Monday, driving the key Nikkei index to an 10-month closing high on active buying of blue-chip issues by domestic investors amid hopes for an economic recovery.

The 225-issue Nikkei stock average climbed 247.43 points, or 2.59 percent, to close at 9,795.16, its highest closing level since Aug. 27.

The broader Topix index of all first section issues on the Tokyo Stock Exchange was up 18.37 points, or 1.94 percent, to 967.04, closing at its highest level this year.

Foreign investors largely opted to stay on the sidelines after a three-day weekend in the United States, but stocks extended gains throughout the day as domestic investors actively snapped up a wide range of issues, briefly sending the key Nikkei index above the 9,800 line, brokers said.

“Amid a lack of active buying by foreign investors, the indexes were supported by domestic players buying both mainstay and lower-priced issues,” said Tsuyoshi Segawa, equity strategist at Shinko Securities Co.

Domestic institutional investors, who had been adopting a wait-and-see stance, have apparently changed their attitude toward Japanese stocks amid recent bullish sentiment in the market, Segawa said.

High-tech issues gained on hopes for firm performances in U.S. technology shares. later in the day, following rises in the Nasdaq 100 index futures on the Globex 24-hour market, brokers said.

“Surges in information technology-related and high-tech issues, including Softbank and NEC, led active buying in other sectors as well,” said Hiroaki Kuramochi, head of the global equities division at Credit Lyonnais Securities (Japan).

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.