TOKYO: Japanese stocks climbed for a third straight session on Tuesday, after dovish comments from the country’s new central bank governor and upbeat US economic signs bolstered investor sentiment.
The Nikkei share average rose 1.05% to close at 27,923.37, marking its steepest one-day gain since March 29.
The broader Topix gained 0.78% to 1,991.85.
Bank of Japan Governor Kazuo Ueda said, in his inaugural press conference on Monday, that it was appropriate to maintain the bank’s ultra-loose monetary policy for now.
Overall sentiment got a further fillip after the Nikkei newspaper reported that billionaire investor Warren Buffett intends to add to his investments in Japan. Chip equipment maker Tokyo Electron jumped 3.69%, tracking its Wall Street peers and leading gainers on the Nikkei.
“Semiconductor-related stocks as well as high-tech stocks are pushing up the Nikkei,” said Nomura strategist Kazuo Kamitani. “Also, expectations that the Bank of Japan will delay modification to its monetary policy seem to be having an effect.”
US shares were mixed on Monday as investors factored in how positive jobs data from last week and inflation figures in the coming days will influence Federal Reserve policy.
Tech firms rose 1.75% in Tokyo. Advantest Corp , Japan’s largest maker of testing devices for semiconductors, climbed 1.98%.
Apple-supplier Japan Display Inc added 4.35%, climbing for a second straight day, after saying it would team up with China’s HKC Corp Ltd on technology for screens.
Japanese shares end higher on firm global economic outlook
The yen depreciated 1.1% on Monday, the most since March 29, following Ueda’s comments, giving a lift to exporters in Tokyo trading, including Mazda Motor Corp and Nissan Motor Co., each of which advanced more than 2%.
Buffett’s company Berkshire Hathaway Inc holds more than 5% stakes in five Japanese trading houses, including Itochu Corp and Marubeni Corp.
The Topix Wholesale Trade Stock Price Index, which includes these companies, jumped 2.3%, leading gains among 33 industry sub-indexes on the Tokyo Stock Exchange.