Roundup: Tokyo shares close sharply higher on U.S. stock futures' rise, bargain-hunting

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TOKYO, June 21 (Xinhua) -- Tokyo stocks bounced back Tuesday, closing sharply higher as sentiment was buoyed by U.S. stock futures rising, with investors snapping up cheap shares following the market's decline a day earlier.

The 225-issue Nikkei Stock Average gained 475.09 points, or 1.84 percent, from Monday to close the day at 26,246.31.

The broader Topix index, meanwhile, added 37.26 points, or 2.05 percent, to finish at 1,856.20.

Dealers here said that despite a lack of fresh trading cues, investors scooped up cyclical issues that had been battered down following the market's tumble the previous day.

They added that along with European shares making solid gains overnight, a rise in U.S. stock futures added to investors' buying impetus.

"While there were no major fresh trading cues throughout the day, market participants bought a wide range of shares because the Nikkei had fallen excessively in recent days," Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Research Institute, was quoted as saying.

"Even though stocks rose today, it does not necessarily mean that they will continue to do so as there are uncertainties over what the Fed will decide at its next monetary policy meeting in July," said Sengoku.

The market's recent volatility has been triggered by concerns that rising inflation will lead to the U.S. Federal Reserve continuing with its aggressive interest rate hikes.

In stark contrast, the Bank of Japan (BOJ) has continued with its ultra-easy monetary policy, believing the current inflationary pressure is only temporary.

With other central banks following suit with the Fed, a widening interest rate gap between the BOJ and the Fed, primarily at the moment, has driven the yen lower and growth concerns in the U.S. are threatening to impact demand for Japanese imports, strategists here explained.

By the close of play, mining, air transportation and real estate issues comprised those that gained the most, and issues that rose outpaced those that fell by 1,719 to 92 on the Prime Market, while 27 ended the day unchanged.

Exporters gained on the yen's weakness, with Toyota accelerating 2.3 percent, while Nissan advanced 3.2 percent.

Tech-related issues were solid, with Nikkei heavyweight Tokyo Electron adding 2.5 percent, while Advantest gained 2.4 percent.

Sony Group leaped 4 percent, while technology startup investor SoftBank Group finished 2.9 percent higher.

Cyclical issues finding favor following their retreat Monday included Japan Airlines rising 3.4 percent and fellow carrier ANA Holdings jumping 2.9 percent by the close.

On the Prime Market on Tuesday, 1,113.40 million shares changed hands, dropping from Monday's volume of 1,177.84 million shares.

The turnover on the second trading day of the week came to 2,619.08 billion yen (19.35 billion U.S. dollars). Enditem

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