Stocks continued to rise Tuesday, lifted by futures-led buying.
The Nikkei 225 average closed 140.40 points, or 0.64 percent, higher at 21,952.40, after retaking 22,000 for the first time since Nov. 12 on an intraday basis. It gained 165.45 points Monday.
The Topix, which covers all first-section issues on the Tokyo Stock Exchange, closed 11.96 points, or 0.73 percent, higher at 1,644.16 after rising 3.24 points Monday.
Both indexes finished higher for the third consecutive session.
After opening firmer following a strong rally on Wall Street, the TSE lost much of its earlier gains later in the morning due to selling on a rally, market sources said.
In afternoon trading, futures-led purchases gave renewed strength to the market, pushing the Nikkei briefly above the 22,000 line.
Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., said, “A wide range of issues attracted small-lot buying from individual investors in Japan.”
Tokyo stocks easily attracted purchases on declines as they were increasingly seen as undervalued following the recent drops, an official of a midsize securities firm said of the afternoon gains.
Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management Co., indicated that the yen’s weakening against the dollar improved investor sentiment.
But “it’s difficult (for the Nikkei) to end above 22,000 until (investors) see the outcome of the summit” between U.S. President Donald Trump and Chinese President Xi Jinping later this week, Ichikawa added.
Rising issues outnumbered falling ones 1,509 to 526 in the first section, while 80 issues were unchanged.
Volume edged down to 1.325 billion shares from 1.339 billion Monday.
Line surged 12.94 percent following a news report that the free messaging app provider will offer Chinese visitors to Japan smartphone-based financial settlement services starting next year in collaboration with major Chinese information and technology firm Tencent Holdings Ltd.
Other major winners included semiconductor-related Tokyo Electron and mobile phone carrier SoftBank Group.
By contrast, discount store operator Don Quijote closed 3.79 percent lower due to selling after recent jumps.
Also on the minus side were daily goods manufacturer Kao and drugmaker Takeda.