Tokyo’s key Nikkei index closes 3.45% higher

A woman walks past an electronic board?displaying stock prices of the Nikkei 225 listed on the Tokyo Stock Exchange in Tokyo on July 25, 2024. (Photo by Kazuhiro NOGI / AFP)

Tokyo’s key Nikkei index jumped 3.45 percent on Tuesday with sentiment boosted by a rally in US tech shares as traders returned from a long weekend break.

The Nikkei 225 added 1,207,51 points to end the session at 36,232.51, while the broader Topix index climbed 2.83 percent, or 70.25 points, to 2,553.55.

The tech-rich Nasdaq Composite Index gained 0.21 on Wall Street on Monday, with chip giant Nvidia among the main winners.

The Nikkei plunged more than 12 percent last Monday on worries about the US economy and a stronger yen, before soaring more than 10 percent the following day.

The index ended a volatile week down 2.5 percent, and 17 percent off its peak in early July.

“Rallies of US high-tech stocks during the holidays cheered investors,” IwaiCosmo Securities said.

“The market was also supported by good earnings results from major Japanese companies.”

But Mizuho Securities earlier cautioned that “a wait-and-see attitude is likely to prevail as US inflation and other indicators are expected to be released later in the week.”