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Tokyo stocks rebounded sharply Tuesday, with investor sentiment lifted by an overnight rally in U.S. equities.

The 225-issue Nikkei average of the Tokyo Stock Exchange rose 293.10 points, or 1.33 percent, to end at 22,288.14 after losing 517.04 points on Monday.

The Topix index of all first-section issues finished up 9.55 points, or 0.62 percent, at 1,558.77. It fell 28.15 points the previous day.

The Tokyo market opened sharply higher after the U.S. Dow Jones Industrial Average bounced back over 2.30 percent on Monday thanks to a surge of major aircraft-maker Boeing and brisk U.S. economic data, including better-than-expected pending home sales in May, brokers said.

The Nikkei gained over 450 points at one point in the morning, also supported by the yen’s weakening against the dollar.

But the market saw its topside capped in the afternoon as investors refrained from active buying amid a dearth of major incentives.

“Risk aversion eased thanks to the Wall Street rise and the weaker yen,” said Hirohumi Yamamoto, strategist at Toyo Securities Co. “Some investors moved to buy the dips after the Nikkei fell below 22,000 yesterday.”

Meanwhile, an official of a major securities firm said that the Tokyo market is only following Wall Street movements amid a lack of market-moving news in Japan.

Noting that the Tokyo market’s rally Tuesday was mainly led by buybacks, another brokerage official said that “investors’ attention is focused on” the U.S. government’s jobs report for June, which is due out Thursday, and earnings releases from U.S. and Japanese firms.

Rising issues outnumbered falling ones 1,093 to 991 on the TSE’s first section, while 85 issues were unchanged.

Volume decreased to 1.240 billion shares from Monday’s 1.249 billion shares.

Automaker Toyota Motor Corp., technology giant Sony Corp. and other export-oriented issues attracted purchases thanks to the weaker yen.

Cyclicals, such as Nippon Steel Corp., construction machinery-maker Komatsu and paper-maker Oji Holdings Corp., gained ground on hopes for an economic recovery in the United States.

Semiconductor-related Tokyo Electron and Advantest Corp. rose after major U.S. chipmaker Micron Technology announced Monday a brisk earnings forecast for June-August.

Among other winners were clothing store chain operator Fast Retailing Co. and technology investor SoftBank Group Corp.

By contrast, Ito En met with selling after Mizuho Securities Co. cut its target price for the beverage maker.

Also on the negative side were drugmaker Takeda Pharmaceutical Co. and cybermall operator Rakuten Inc.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average rose 180 points to 22,230.

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