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Tokyo stocks climb on hopes for US economic recovery

This Oct. 26, 2017 file photo shows the inside of the Tokyo Stock Exchange building in the Japanese capital. (Kyodo)

TOKYO (Kyodo) -- Tokyo stocks climbed Tuesday as hopes grew for a U.S. economic recovery after President Donald Trump signed relief orders for Americans hit by the coronavirus pandemic.

    The 225-issue Nikkei Stock Average surged 420.30 points, or 1.88 percent, from Friday to 22,750.24. Japanese financial markets were closed Monday for a national holiday.

    The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 39.22 points, or 2.54 percent, higher at 1,585.96.

    Gainers were led by real estate, iron and steel, and bank issues.

    The U.S. dollar was steady in the lower 106 yen zone amid hopes for an economic recovery after Trump signed executive orders Saturday that will provide economic aid to Americans who lost their jobs due to the coronavirus pandemic, brokers said.

    At 5 p.m., the dollar fetched 106.12-13 yen compared with 105.91-106.01 yen in New York at 5 p.m. Monday.

    The euro was quoted at $1.1746-1747 and 124.65-69 yen against $1.1732-1742 and 124.37-47 yen in New York late Monday afternoon.

    The yield on the benchmark 10-year Japanese government bond rose 0.020 percentage point from Friday's close to 0.025 percent, as investors sold the safe-haven debt encouraged by an overnight rise in U.S. Treasury yields and gains in Tokyo shares on Tuesday.

    After a three-day decline through Friday, the Nikkei moved higher from the opening and extended gains in the afternoon.

    Better-than-expected U.S. job data for July reported late last week and Trump's signing of the executive orders offset concern about the virus-hit U.S. economy, said Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities Co.

    "The improved prospects triggered buybacks of some shares that were deemed undervalued," including real estate issues, Horiuchi added.

    On the First Section, advancing issues outnumbered decliners 1,810 to 330, while 33 ended unchanged.

    Mitsubishi Estate soared 113.50 yen, or 7.2 percent, to 1,689.00 yen, Mitsui Fudosan jumped 142.50 yen, or 8.1 percent, to 1,912.50 yen and Tokyu Fudosan Holdings surged 24 yen, or 5.4 percent, to 466 yen.

    Trading volume on the main section rose to 1,627.14 million shares from Friday's 1,189.38 million shares.

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