Japan shares surge

01 Jul, 2020

TOKYO: Japanese shares ended higher on Tuesday, as positive economic data from the United States and China helped to end the quarter on a strong note and as investors pinned hopes on stimulus.

The benchmark Nikkei average advanced 1.33% to 22,288.14. The benchmark gained 17.82% for the quarter.

Meanwhile, the broader Topix climbed 0.62% to 1,558.77, both rebounding from the lowest close touched in the previous session.

The Tokyo markets got an early boost tracking overnight gains in Wall Street, as investors hoped for a stimulus-backed economic rebound and after US home sales data showed a quick recovery in housing market activity last month.

However, risk sentiment was weighed down by concerns over Sino-US tensions after China's parliament passed the national security legislation for Hong Kong on Tuesday.

All but six of 33 sector sub-indexes on the Tokyo exchange traded higher on Tuesday, with highly cyclical iron and steel and airlines leading advances.

The yen softened against the dollar to 107.76, providing a tailwind for Japan's automaker stocks, with Honda Motor Co Ltd climbing 1.74% and Nissan Motor Co Ltd adding 1.14%.

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