Roundup: Tokyo stocks close higher on solid earnings, manufacturing data

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TOKYO, Aug. 4 (Xinhua) -- Tokyo stocks closed higher Tuesday as investor sentiment was lifted by some solid domestic corporate earnings results with data showing U.S. manufacturing expanded in July adding to broader hopes for a global economic recovery.

The 225-issue Nikkei Stock Average gained 378.28 points, or 1.70 percent, from Monday to close the day at 22,573.66.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 32.62 points, or 2.14 percent, to finish at 1,555.26.

Trading got off to a bright start following Wall Street's positive lead as tech shares staged an overnight rally, with the market mood also brightened by data showing U.S. manufacturing activity for July expanded to the highest level since March 2019, brokers here highlighted.

They added that with the yen remaining comparatively weak against its U.S. counterpart, investors continued to seek out bargains following the Nikkei's protracted losing streak recently.

"There was widespread bargain-hunting on the market following the recent declines," Yoshihiro Okumura, general manager at Chibagin Asset Management, was quoted as saying.

Gains accelerated in the afternoon following a slew of solid April-June domestic corporate earnings, market strategists also said.

"Earnings-related buying was seen from the morning and stronger-than-expected results from Japanese trading houses further lifted the market," Maki Sawada, vice president of the investment research and investor services department at Nomura Securities Co., said.

By the close of play, air transportation, land transportation and marine transportation issues comprised those that advanced the most.

As for trading houses, Marubeni climbed 11.0 percent, after reporting a solid first-quarter net profit.

Exporters got a lift from the yen's weaker tone, with Mazda Motor soaring 10.6 percent, while Mitsubishi Motor climbed 7.2 percent. Nissan Motor Co. meanwhile accelerated 6.6 percent by the close.

Suzuki Motor also found favor, gaining 7.7 percent, after reporting better-than-expected earnings.

Kikkoman surged 14.1 percent, following the food maker's earnings also coming in better than expected.

Nikkei heavyweight SoftBank Group closed 0.7 percent lower, however, after the firm said it under-reported taxable income by around 40 billion yen (377 million U.S. dollars).

Issues that rose outpaced those that fell by 1,807 to 316 on the First Section, while 50 ended the day unchanged.

On the main section on Tuesday, 1.403 billion shares changed hands, rising from Monday's volume of 1.322 billion shares.

The turnover on the second trading day of the week came to 2.508 trillion yen (23.641 billion U.S. dollars). Enditem

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