Stocks gained ground Monday following a sharp rise of Wall Street late last week.
The Nikkei 225 average jumped 144.35 points, or 0.71 percent, to end at 20,563.16. On Friday, the key market gauge advanced 13.16 points.
The Topix, which covers all first-section issues on the Tokyo Stock Exchange, finished 9.04 points, or 0.61 percent, higher at 1,494.33 after rising 1.44 points Friday.
The market opened higher, backed by an advance of the U.S. equity market last Friday reflecting hopes for a de-escalation in U.S.-China trade tensions, brokers said. White House economic adviser Larry Kudlow has said that U.S. and Chinese negotiators produced positive news in their ongoing trade talks.
Also, concerns over a global recession receded somewhat as the Chinese and German governments are reportedly considering compiling economic stimulus measures, market sources said.
The Nikkei gained about 215 points soon after the opening. The market lost some of that steam later, due partly to a dearth of fresh trading incentives.
Some brokers said the TSE was supported by robust Chinese stocks.
Still, Yutaka Miura, senior technical analyst at Mizuho Securities Co., noted that the market’s topside was capped amid lingering uncertainties over the U.S.-China negotiations after Donald Trump told reporters Sunday that his country does not want to do business with China’s Huawei Technologies, which has been banned from making deals with U.S. companies.
Investors refrained from active trading in the afternoon, waiting for a closely watched key annual financial symposium in Jackson Hole, Wyoming, that starts Thursday, market sources said.
They will be paying attention to a speech by Federal Reserve Chairman Jerome Powell at the gathering on Friday as Trump continues urging the central bank to cut interest rates, the sources said.
Rising issues outnumbered falling ones 1,518 to 515 on the first section, while 117 issues were unchanged.
Volume dropped to 904 million shares from 993 million Friday.
By value, turnover on the first section stood below ¥2 trillion for the fourth straight trading day.
Banks attracted buying thanks to a rise in U.S. long-term interest rates, with Mitsubishi UFJ advancing 1.30 percent and Mizuho 0.91 percent.
Taiyo Yuden, TDK and other semiconductor-related issues also rose, helped by a climb of the SOX Philadelphia semiconductor index Friday.
FamilyMart Uny advanced 8.73 percent after the retail group said Friday that it will acquire an additional stake in Pan Pacific International Holdings, which runs Don Quijote discount stores.
On the other hand, Recruit Holdings dropped 2.96 percent as more companies have come forward to announce that they had bought data on the probability of job-hunting students declining informal job offers compiled by Recruit Career, a unit of the job information provider.
Also on the negative side were supermarket operator Kobe Bussan and air conditioner maker Daikin.