Japan’s Nikkei closed 1% higher on Tuesday as investors hunted for beaten-down technology stocks, with sentiment underpinned by gains in Asian stocks U.S. futures.
The Nikkei share average advanced 1.03% to 26,423.47. The broader Topix rose 0.5% to 1,879.12.
“Investors took a fresh view on technology and growth stocks as U.S. yields stabled. They were buying back shares that fell too much.” said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
U.S. President Joe Biden considering scrapping tariffs on a range of Chinese goods to curb inflation also lifted overall sentiment, Arisawa said.
With U.S. markets closed due to a holiday on Monday, European stocks rallied 0.8% and Britain’s FTSE rose over 1%, while Asian shares inched up as positive economic data and hints of easing Sino-U.S. tensions offered some respite to the recent sell-offs
Back in Japan, Uniqlo owner Fast Retailing jumped 4.33% to become the biggest boost for the Nikkei on Tuesday. Technology investor SoftBank Group rose 1.8% and chip making equipment maker Tokyo Electron gained 0.38%.
Mobile phone services provider KDDI climbed 1.49%, rebounding from a previous session’s loss, which was fuelled by a system failure that affected almost 40 million users. nationwide.
Rakuten Group added 1.62% after the e-commerce firm said it has applied to list its online banking unit on the Tokyo Stock Exchange.
Shipping firms were weak, with Kawasaki Kisen Kaisha losing 4.51% and Mitsui O.S.K. Lines falling 2.75% to become the top losers on the Nikkei.