Tokyo Stocks Rise on Weaker Yen and US Gains

Tokyo stocks climbed on Tuesday after a sharp drop the previous day, as bargain hunters capitalized on the dip, boosting the index.

Japan’s benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, rose by 1.93%, or 732.42 points, closing at 38,651.97.

The market received support from a weakening yen, which was trading around 144 per dollar, alongside positive gains in the US markets, according to Xinhua news agency.

However, despite the rebound, some investors engaged in profit-taking amid concerns regarding the new government’s economic policies following the election of Shigeru Ishiba as Prime Minister, who garnered majority support in both houses of parliament. Market participants are keenly observing how his economic strategies will unfold.

The broader Tokyo Stock Price Index also saw an increase, climbing by 44.84 points, or 1.69%, to finish at 2,690.78.

Among the stocks listed on the top-tier Prime Market, 1,272 rose, 331 fell, and 40 remained unchanged.