Tokyo stocks close higher

• Nikkei 225 index gained 1.84 percent, or 475.09 points, to close at 26,246.31.
• The Topix index gained 2.05 percent, 37.26 points.
• The yen’s fall to 135 against the dollar sparked rallies in major exporters like high-tech stocks.

Tokyo stocks finished the day higher, rebounding dramatically after investors were encouraged in part by a spike in US market futures.

The Nikkei 225 index gained 1.84 percent, or 475.09 points, to close at 26,246.31, while the Topix index gained 2.05 percent, or 37.26 points, to close at 1,856.20.

In Tokyo, one dollar was worth 135.10 yen, while in London it was worth 135.08 yen. On Monday, due to a holiday, the market in the United States was closed.

Tokyo stocks rebounded after European shares were bid higher across the board, “prompting short sellers to buy back their short positions”, Okasan Online Securities said in a note.

Read More: Tokyo stocks rally on cheaper yen, robust Wall Street

The yen’s fall to 135 against the dollar also sparked rallies in major exporters like high-tech stocks.

The fact that US stock index futures are substantially tilted in favour of purchasing has “contributed to the improvement in the market attitude,” according to the brokerage that made the statement. This has added to the upward momentum that has been building.

Read More: Tokyo stocks close lower on inflation worries

As one of the major equities, Sony Group increased by 3.99 percent to 11,465 yen. The price of a share of SoftBank Group’s shares rose by 2.87 percent, reaching 5,075 yen.

Advantest, a leading manufacturer of semiconductor testing kits, rose 2.38 percent to 7,310 yen. Nintendo increased by 2.41 percent to 57,560 yen, while Toyota increased by 2.34 percent to 2,138.5 yen.