Stocks gained further ground Tuesday as buybacks continued.
The Nikkei 225 average rose 144.71 points, or 0.66 percent, to close at 22,196.89 after jumping 264.04 points Monday.
The Topix, which covers all first-section issues on the Tokyo Stock Exchange, was up 4.34 points, or 0.25 percent, at 1,716.13. It climbed 20.25 points Monday.
Both indexes extended their winning streak to a third session.
Stocks continued to attract repurchases amid a global risk-on mood in the absence of major market-moving incentives linked to U.S.-China trade friction, market sources said.
Investors took heart from the dollar’s rise above ¥111 and Wall Street’s advance Monday, analysts said.
Continuous buybacks helped recoup losses incurred last week due to concerns over a U.S.-China trade war, said Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc.
Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co., attributed Tuesday’s advance to futures-led purchases.
Fujii showed his view that stocks’ briskness backed by buybacks is expected to be “short-lived.”
“We don’t know when something will happen,” he said, indicating that persistent worries about U.S.-China trade as well as geopolitical risks involving North Korea weigh on the market’s topside.
Despite the advance in the Nikkei and Topix, falling issues outnumbered rising ones 1,094 to 932 in the first section, while 73 issues were unchanged.
Volume increased to 1.522 billion shares from 1.220 billion Monday.
Idemitsu and Showa Shell attracted hefty purchases on news that the oil companies have agreed to merge in April after winning approval from major shareholders from Idemitsu’s founding family. Rivals Fuji Oil and Cosmo Energy were also upbeat.
Financial issues, including mega-bank groups Mitsubishi UFJ, Sumitomo Mitsui and Mizuho and insurers Dai-ichi Life and Sompo Holdings, were robust after their U.S. peers fared well in New York trading Monday.
Mobile phone carrier Softbank Group and clothing retailer Fast Retailing were among other major gainers.
By contrast, Capcom plunged 11.30 percent after Merrill Lynch Japan Securities Co. cut its investment rating and stock target price Monday, brokers said.
Also on the minus side were retailer FamilyMart Uny Holdings and Sumitomo Dainippon Pharma.