Roundup: Tokyo stocks close higher after Nikkei's losing streak for 4 days

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TOKYO, Aug. 18 (Xinhua) -- Tokyo stocks closed higher Wednesday, with the Nikkei index breaking a four-day losing streak as investors chased after recently battered shares, although gains were limited by worries over the economic recovery amid a resurgence of COVID-19 cases, local media reported Wednesday.

The 225-issue Nikkei Stock Average finished up 161.44 points, or 0.59 percent, from Tuesday at 27,585.91.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange ended 8.34 points, or 0.44 percent, higher at 1,923.97.

Gaining issues were led by farm and fishery, consumer credit, and textile and apparel issues.

Stocks fluctuated in the morning, followed by the extension of gains later in the day, with investors purchasing battered shares, while the Tokyo market was supported by gains on the other markets in Asia.

"The market had been overreacting over the last few days despite a lack of clear negative cues, but sentiment improved as some elements for concern, such as a stronger yen, retreated," said Shingo Ide, chief equity strategist at the NLI Research Institute, adding that it was also boosted by U.S. stock futures trimming losses.

However, the Japanese government's decision on Tuesday to expand the COVID-19 state of emergency to seven other prefectures added pressure to the market, as the resurgence of infectious cases showed no sign of ceasing.

Investors do not hold a clear prospect of when the economic recovery will achieve due to the country's slow vaccination plan and legal inability to implement hard lockdowns to control the spread of the COVID-19, Ide said.

Meanwhile, market participants have interest in the minutes of the U.S. Federal Reserve's two-day policy meeting in July, which is scheduled to be released later in the day, to estimate how the bank's position on stimulus tapering has changed compared to the months earlier, he added.

On the First Section, advancers outnumbered decliners 1,435 to 659, while 93 finished unchanged.

Pharmaceutical company Eisai advanced 2.6 percent, after a report that its Alzheimer's drug corporately developed with U.S. biotech giant Biogen Inc. is set to come into use in over 300 medical facilities in the United States.

Exporters were supported after the yen weakened slightly against the U.S. dollar overnight, dealers said.

Automakers Suzuki Motor increased 1.2 percent, and Mitsubishi Motors gained 1.0 percent, while electronics manufacturer Sony Group grew 1.7 percent.

Trading volume on the main section decreased to 946.54 million shares from Tuesday's 954.19 million shares. Enditem

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