Nikkei closes up more than 3.1% on US bounceback

TOKYO (AFP/APP): Tokyo’s benchmark Nikkei index surged more than 3.1 percent on Tuesday, rebounding from the previous session as Wall Street bounced back from a rout last week.
The Nikkei 225 index, which lost more than three percent on Monday, rose 3.12 percent, or 873.20 points, to close at 28,884.13. The broader Topix index jumped 3.16%, or 60.08 points, to 1,959.53.
Tokyo shares rallied from the outset, quickly recovering from the previous day’s rout after US shares bounced back, brokers said. “Players overreacted yesterday. So they bought back comfortably today,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities. “But trading is expected to remain cautious for now,” Horiuchi told AFP, adding that investors will closely monitor moves on Wall Street.
Investors were focusing on Federal Reserve Chair Jerome Powell’s testimony in the US Congress later in the day, brokers said.
The dollar fetched 110.45 yen in Asian afternoon trade, against 110.18 yen in New York late Monday.