Tokyo stocks bounced back sharply on Tuesday following an overnight rise on Wall Street, with the benchmark Nikkei average shooting up more than 1,000 points.

The 225-issue Nikkei average of the Tokyo Stock Exchange skyrocketed 1,051.26 points, or 4.88 percent, to end at 22,582.21, marking its first rise in four trading sessions. On Monday, the key market gauge plunged 774.53 points.

The Topix index of all TSE first section issues closed up 62.67 points, or 4.09 percent, at 1,593.45, after a 39.90-point fall the previous day. The Topix ended on the sunny side for the first time in six sessions.

The Tokyo market enjoyed buybacks in a wide range of issues throughout the morning, after its tumble the day before.

Investors’ buying appetite was aroused by a climb in U.S. stocks on Monday, thanks to the Federal Reserve’s announcement that it will buy individual corporate bonds as a coronavirus response measure, brokers said.

Encouraged by a news report saying that the administration of U.S. President Donald Trump is preparing a one-trillion-dollar infrastructure proposal to shore up the U.S. economy, which has been battered by the novel coronavirus crisis, both indexes rose further in the afternoon.

Brokers also attributed the Tokyo market’s strength to higher Dow Jones industrial average futures in off-hours trading and rises in other major Asian stocks, including Chinese equities.

Pointing to New York state’s better-than-expected manufacturing activity index for June, released on Monday, Maki Sawada, vice president of Nomura Securities Co.’s Investment Research & Investor Services Department, said, “Investors were relieved to see economic data hinting at a recovery of the U.S. economy amid moves to restart economic activities.”

Despite Tuesday’s strength of the Tokyo market, Sawada noted, “Investors are still wary of a possible second wave of coronavirus infections in the world.”

The two-day monetary policy meeting of the Bank of Japan’s Policy Board, which ended on the same day, had “very little impact” on the market, she said.

Rising issues overwhelmed falling ones 2,104 to 48 in the TSE’s first section, while 16 issues were unchanged. Volume increased to 1.554 billion shares from Monday’s 1.363 billion shares.

Megabank group Mitsubishi UFJ Financial Group Inc., insurer Dai-ichi Life Holdings Inc. and other financials attracted buying on the back of rises in the U.S. peers the previous day.

Mitsui Chemicals Inc., Sumitomo Chemical Co., Asahi Kasei Corp. and Tosoh Corp. rose, in response to Mitsubishi UFJ Morgan Stanley Securities Co.’s upward revisions to its target stock prices for the chemical firms.

Among other major winners were industrial robot producer Fanuc Corp. and job information provider Recruit Holdings Co.

On the other hand, a handful of losers included pay parking lots operator Park24 Co. and lactic beverage maker Yakult Honsha Co.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average soared 1,010 points to end 22,360.

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