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The Nikkei 225 average advanced further to end at its highest level in about 22 months Tuesday, supported by the yen’s weakening against the dollar and U.S. equities’ advance overnight.
The Nikkei jumped 162.66 points, or 0.81 percent, to 20,230.41, its highest finish since Aug. 18, 2015. On Monday, the key market gauge climbed 124.49 points.
The Topix, which covers all first-section issues, ended 11.18 points, or 0.70 percent, higher at 1,617.25 after rising 10.03 points Monday.
Stocks attracted purchases as investors took heart from the dollar’s rise above ¥111.50 after William Dudley, president of the U.S. Federal Reserve Bank of New York, on Monday showed confidence in the U.S. economy’s outlook, brokers said.
The Tokyo Stock Exchange was also boosted by U.S. equities’ firmness that sent the Dow Jones industrial average rising to a fresh record high Monday, they said.
The Nikkei’s advance was attributed to “gains in some heavyweight components, including semiconductor-related Tokyo Electron,” said Hideyuki Suzuki, head of the investment market research department at SBI Securities Co.
If the dollar rises above ¥112, the Nikkei could reach 21,000, Suzuki predicted.
The market’s topside “was capped by selling to lock in profits as the Nikkei rose above 20,300 temporarily,” an official of a bank-affiliated securities firm said.
The Nikkei average failed to end above 20,300 “due to a lack of new buying incentives,” said Masahiro Ichikawa, senior strategist in Sumitomo Mitsui Asset Management Co.’s economic research department.
Rising issues far outnumbered falling ones 1,532 to 389 in the first section, while 99 issues were unchanged.
Volume rose to 1.836 billion shares from Monday’s 1.484 billion.
Export-oriented names, including automaker Toyota, electronics maker Hitachi and electronic parts maker Murata Manufacturing, were upbeat thanks to the weaker yen.
An overnight rise in U.S. long-term interest rates pushed up financial issues, such as mega-bank groups Mitsubishi UFJ, Sumitomo Mitsui and Mizuho, insurers Dai-ichi Life and Sompo Holdings and brokerage firms Nomura and Daiwa.
Other major winners included online stationery seller Askul and mobile phone carrier SoftBank Group.
By contrast, Kobayashi Pharmaceutical and constructor Haseko met with selling.