This Oct. 1, 2020 file photo shows the Tokyo Stock Exchange. (Mainichi)
TOKYO (Kyodo) -- Tokyo stocks ended higher Wednesday, with the Nikkei index snapping a four-day losing streak as investors went after recently battered shares, although gains were limited by concerns over the economic recovery amid the country's battle against a resurgence of COVID-19 cases.
The 225-issue Nikkei Stock Average ended up 161.44 points, or 0.59 percent, from Tuesday at 27,585.91. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 8.34 points, or 0.44 percent, higher at 1,923.97.
Gainers were led by farm and fishery, consumer credit, and textile and apparel issues.
The U.S. dollar was stuck in the mid-109 yen range in Tokyo after the unit was bought partly on concerns over heightening geopolitical risks with the Taliban regaining control of Afghanistan, dealers said.
Stocks fluctuated in the morning before extending gains later in the day, as investors scooped up battered shares while the Tokyo market was supported by gains on the markets elsewhere in Asia.
"The market had been overreacting over the last few days despite a lack of clear negative cues, but sentiment improved as some elements for concern, such as a stronger yen, retreated," said Shingo Ide, chief equity strategist at the NLI Research Institute, adding that it was also lifted by U.S. stock futures trimming losses.
However, the Japanese government's decision Tuesday to expand the COVID-19 state of emergency to seven more prefectures weighed on the market, as the resurgence of infections showed no sign of subsiding.
Investors do not have a clear prospect of when the economy will recover due to the country's lagging inoculation scheme and legal inability to implement hard lockdowns to curb the spread of the coronavirus, Ide said.
Meanwhile, market participants are interested in the minutes of the U.S. Federal Reserve's two-day policy meeting in July, slated to be released later in the day, to gauge how the bank's stance on stimulus tapering has changed compared to the previous months, he added.
On the First Section, advancing issues outnumbered decliners 1,435 to 659, while 93 ended unchanged.
Pharmaceutical company Eisai gained 232 yen, or 2.6 percent, to 9,243 yen, after a report that its Alzheimer's drug jointly developed with U.S. biotech giant Biogen Inc. is set to be used by more than 300 medical facilities in the United States.
Exporters were supported after the yen weakened slightly against the U.S. dollar overnight, dealers said.
Automakers Suzuki Motor rose 57 yen, or 1.2 percent, to 4,715 yen, and Mitsubishi Motors climbed 3 yen, or 1.0 percent, to 294 yen, while electronics manufacturer Sony Group advanced 180 yen, or 1.7 percent, to 10,900 yen.
Trading volume on the main section fell to 946.54 million shares from Tuesday's 954.19 million shares.
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