Nikkei index rebounds to fresh three-month high

Tokyo's benchmark stock index cast off early losses Tuesday as bargain hunting pushed it to a fresh three-month high after a holiday long weekend. The Nikkei 225 index at the Tokyo Stock Exchange rose 0.23 percent, or 45.08 points, to finish at 19,924.89, its highest since late August. The broader Topix index of all first-section shares closed up 0.17 percent, or 2.76 points, at 1,605.94.
Japanese markets were closed Monday for a national holiday. On Tuesday, investors were looking ahead to fresh Japanese data later this week - including inflation and spending figures - as well as details of a government stimulus package. The numbers come after the world's number three economy fell into another recession - the second in Prime Minister Shinzo Abe's near three-year premiership. "We will probably see more speculation come out about various stimulating government policies and that will be a plus for stocks," Nobuyuki Kashihara from Mizuho Asset Management told Bloomberg News.
Abe unveiled an ambitious plan in September to increase Japan's gross domestic product to 600 trillion yen ($4.89 trillion). The proposal comes as government data showed last week the economy contracted in the six months to September. Dealers were now awaiting revised US third quarter gross domestic product figures due later Tuesday. In share trading, Sharp's volatile stock soared nearly 14 percent, adding to last week's gains on reports that the ailing consumer electronics maker would not be required to repay some of its bank loans.
Sharp, which last month posted a six-month net loss of nearly $700 million, rose 13.63 percent to 150 yen. Toyota climbed 0.70 percent to 7,636 yen, Sony was up 0.67 percent to 3,307 yen while market heavyweight Fast Retailing, operator of the Uniqlo clothing chain, edged up 0.04 percent to 48,230 yen. Automaker Nissan fell 0.88 percent to 1,293 yen, while industrial robotics giant Fanuc lost 0.90 percent to 22,000 yen. On currency markets, the dollar edged down to 122.76 yen from 122.83 yen Monday in New York.