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Tokyo stocks rebound in broad rally after last week's losses

This file photo shows the Tokyo Stock Exchange on Oct. 2, 2020. (Mainichi)

TOKYO (Kyodo) -- Tokyo stocks ended sharply higher Monday, with the Nikkei index briefly rising over 2 percent, as investors moved to scoop up battered shares after a sharp decline late last week on concern about the country's economic recovery.

    The 225-issue Nikkei Stock Average ended up 497.43 points, or 1.82 percent, from Friday at 27,781.02. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 38.97 points, or 2.05 percent, higher at 1,940.05.

    Every industry category gained ground except air transportation issues. Major gainers included marine transportation, and iron and steel issues.

    The U.S. dollar remained solid in the upper 109 yen range after it was bought Friday on a better-than-expected U.S. consumer confidence survey for July.

    At 5 p.m., the dollar fetched 109.66-68 yen compared with 109.64-74 yen in New York and 109.52-54 yen in Tokyo at 5 p.m. Friday.

    The euro was quoted at $1.1881-1883 and 130.29-33 yen against $1.1862-1872 and 130.08-18 yen in New York and $1.1895-1896 and 130.28-32 yen in Tokyo late Friday afternoon.

    The yield on the benchmark 10-year Japanese government bond was unchanged from Friday's close at 0.015 percent.

    The Nikkei gained throughout the day, briefly climbing over 550 points, or more than 2 percent, in the afternoon to log its largest rise since June 22 after the benchmark declined to its lowest level in six months late last week on deepening concerns over economic recovery amid record-high COVID-19 cases in the country.

    "Sentiment was also pushed up after a historically large number of firms reported upward revisions for earnings forecasts for the remaining business year," said Shingo Ide, chief equity strategist at the NLI Research Institute, adding gains in other Asian markets further supported Tokyo shares.

    Investors are keeping their eyes on upcoming earnings results from major firms such as Toyota Motor and Nintendo later in the week as they have the potential to alter market sentiment, he added.

    On the First Section, advancing issues outnumbered decliners 1,848 to 301, with 41 unchanged.

    Chip-related shares benefited from gains late last week in their U.S. counterparts, with Sumco climbing 43 yen, or 1.7 percent, to 2,560 yen, Screen Holdings advancing 290 yen, or 2.9 percent, to 10,140 yen and Tokyo Electron up 1,630 yen, or 3.6 percent, at 46,550 yen.

    NEC advanced 220 yen, or 4.0 percent, to 5,760 yen, after the electronics firm said Friday it returned to the black in the April to June quarter, beating market expectations.

    Bucking the upward trend, Mazda Motor slumped 61 yen, or 5.7 percent, to 1,011 yen after the automaker on Friday left unchanged its earnings forecast for the business year through March 2022 despite improved April-June results, citing uncertainties about production costs and chip shortages.

    Trading volume on the main section fell to 1,062.52 million shares from Friday's 1,236.71 million shares.

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