TOKYO, May 27 (Xinhua) -- Tokyo stocks closed higher Wednesday after early losses were recouped, as continued hopes for increased economic activity in Japan and other countries, where coronavirus pandemic restrictions have been eased, bolstered risk appetite.
The 225-issue Nikkei Stock Average added 148.06 points, or 0.70 percent, from Tuesday to close the day at 21,419.23.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, gained 14.74 points, or 0.96 percent, to finish at 1,549.47.
After an initial round of profit-taking in early trade following the market's steep rise a day earlier, buying was underpinned by continued hopes that global economies, including Japan's, where virus-linked restrictions have been eased and will see a revival in economic activities.
Market analysts said in terms of global industrial output hampered by the coronavirus pandemic, the worst had been overcome.
"The underlying consensus is that factory activities have seen the worst period on the virus front," Yutaka Miura, senior technical analyst at Mizuho Securities Co., was quoted as saying.
The yen's softer tone versus the U.S. dollar also contributed to a largely upbeat mood that saw losses in earlier trade recouped and gains extended.
While helping exporter issues reliant on a weak yen to boost profits when repatriated, a softer yen versus the U.S. currency usually buoys the broader market, investment analysts here highlighted.
The U.S. dollar was quoted at 107.52-53 yen at 5 p.m. local time, compared with 107.52-62 yen in New York and 107.82-83 yen at 5 p.m. on Tuesday in Tokyo.
The euro, meanwhile, fetched 1.0964-0965 dollars and 117.89-93 yen against 1.0977-0987 dollars and 118.06-16 yen in New York and 1.0934-0936 dollars and 117.89-93 yen in late Tuesday afternoon trade in Tokyo.
Financial issues, including banking, insurance and securities, found favor, with Mitsubishi UFJ Financial Group adding 3.6 percent, while Nomura Holdings climbed 5.7 percent. Dai-ichi Life Holdings, meanwhile, closed the day 6.3 percent higher.
Nissan Motor accelerated 5.5 percent, after reports said the automaker is planning a hefty cost cutting initiative to mitigate the effects the global pandemic has had on its sales and output.
Semiconductor-linked issues came under pressure, however, with Advantest Corp. sliding 2.7 percent, while Tokyo Electron Ltd. lost 3.6 percent by the close.
Transportation-oriented issues also tracked lower, as investors took profits following the sectors' recent rally triggered by Japan completely lifting its state of emergency over the COVID-19 pandemic on Monday.
ANA Holdings Inc. fell 2.0 percent, while West Japan Railway Co. finished 2.8 percent lower.
By the close of play, securities house, iron and steel and rubber product-linked issues comprised those that gained the most, and issues that rose outpaced those that fell by 1,431 to 662 on the First Section, while 77 ended the day unchanged.
On the main section on Wednesday, 1.763 billion shares changed hands, rising from Tuesday's volume of 1.472 billion shares.
The turnover on the third trading day of the week came to 2.875 trillion yen (26.694 billion U.S. dollars). Enditem
