Tokyo stocks close up 1.01pc

March 27, 2014 - 9:20:01 am

TOKYO: Tokyo stocks closed up 1.01 percent on Thursday, recovering from early losses thanks to a downturn in the yen and bargain hunting.

The Nikkei 225 climbed 145.73 points to 14,622.89 while the Topix of all first-section issues ended up 0.41 percent, or 4.83 points, at 1,176.90.

Bargain hunting emerged after selling ran its course, traders said.

"Stocks are cheap enough now to spur some bargain-hunting here, especially as the 2014 Nikkei low (around 14,000) remains technically intact," said an an equity trading director at a foreign brokerage.

The market also got support as the dollar turned up. A weak yen is positive for Japanese exporters as it makes them more competitive abroad and inflates profits when repatriated.

"The relationship between the stock and currency markets is mutually reflexive, but there aren't any overt fundamental catalysts or news events to stir either right now," said an equity trader at a European brokerage.

"Both remain thinly traded, however, which makes them naturally more volatile."

The dollar was below 102.00 yen early Thursday but came back to 102.24 yen in later trade against 102.00 yen in New York Wednesday afternoon.

ANA Holdings closed down 1.34 percent at 220 yen after All Nippon Airways (ANA) announced it would buy 70 new planes worth $16.4 billion.

Thirty of the 70 aircraft are from Airbus, marking a victory for the European maker as it tries to prise open the lucrative Japanese market.

Exoskelton robot-suit maker Cyberdyne tumbled 15.62 percent to 8,100 yen after rocketing on its debut on the start-up section the previous day.

But it was still well up on its listing price of 3,700 yen, having surged Wednesday to 9,600 yen.

Exporters turned up in tandem with the dollar's rise, with Sony closing up 0.53 percent at 1,881 yen.

Honda narrowed early losses of more than 2 percent to 0.22 percent to close at 3,533 yen.

Toyota soared 1.95 percent to 5,731 yen after announcing a $3.5 billion buyback of its own shares on Wednesday. (AFP)