Tokyo stocks close higher

On Tuesday, Tokyo markets finished higher, extending gains on Wall Street, although investors kept a wary eye on Chinese stocks.

The Nikkei 225 index advanced 0.41 percent, or 109.33 points, to 26,700.11, while the Topix index advanced 0.11 percent, or 1.99 points, to 1,878.51.

The dollar was trading at 127.91 yen in Tokyo, down from 128.15 yen in New York on Monday.

The Nikkei “followed gains on Wall Street and rallied” as the session began, according to Okasan Online Securities.

After a brief dip, Tokyo stocks rebounded, buoyed by an upward trend in US stock futures, according to the brokerage.

Lockdowns in China however fanned fears of an economic slowdown.

“Rising concerns over China’s economic slowdown are putting a damper on demand for oil, which in turn has weakened inflation, however briefly,” Makoto Sengoku, market analyst at Tokai Tokyo Research Institute, told AFP.

“This is why US stocks rose last night,” he said.

SoftBank Group gained 4.12 percent to 5,195 yen in Tokyo, while Sony Group fell 0.31 percent to 11,070 yen and Toyota lost 0.45 percent to 2,180 yen.

Fast Retailing, the parent company of Uniqlo, rose 0.29 percent to 61,240 yen, while Toshiba rose 0.47 percent to 5,342 yen.