Japanese shares hit a more than three-month high on Tuesday as hopes for a global economic recovery bolstered expectations for a rebound in corporate earnings, with more countries gradually reopening after coronavirus-related lockdowns.
The 225-issue Nikkei average ended 1.19 percent higher at 22,325.61 points after earlier rising to its highest level since Feb. 26. Industrial and technology shares led the advance.
Some investors remain cautious due to uncertainty caused by mass protests in the United States against police brutality and diplomatic tension between Washington and Beijing over civil liberties in Hong Kong.
Japanese stocks also got a boost from overnight Wall Street gains, after data showed U.S. manufacturing recovered from an 11-year low, offering more signs that the global economy is at last starting to steady since the coronavirus outbreak.
The data strengthened the view that factory output has already seen the worst of the pandemic-induced downturn, and helped lift a wide range of issues including metal suppliers, brokers said.
“Many recent data from large economies indicate their worst moments are behind, and that is good news for Japan’s export-oriented economy,” said Makoto Sengoku, a market analyst at Tokai Tokyo Research Institute.
Share gains were trimmed after the initial buying ran its course, as concern over a possible escalation of the protests in the United States as well as a fresh wave of COVID-19 infections prompted some investors to lock in gains after the Nikkei gained nearly 1,700 points over the past six trading days, the brokers said.
There were 196 advancers on the Nikkei index against 27 decliners on Tuesday.
The largest percentage gainers in the index were printer and medical imaging company Konica Minolta Inc., up 6.11 percent, followed by beer-maker Asahi Group Holdings Ltd., gaining 5.52 percent, and industrial machinery-maker IHI Corp., up by 5.47 percent.
The largest percentage losses in the index were drugmaker Daiichi Sankyo Co. Ltd.,down 4.38 percent, followed by Astellas Pharma Inc., losing 1.88 percent, and Kansai Electric Power Co. Inc., down by 1.27 percent.
The broader Topix index rose 1.21 percent to 1,587.68.
The volume of shares traded on the Tokyo Stock Exchange’s main board was 1.16 billion, compared to the average of 1.38 billion in the past 30 days.