Tokyo stocks ended higher Tuesday, supported by technology issues, while exporters were sought on a weak yen against the U.S. dollar.
The 225-issue Nikkei Stock Average ended up 426.09 points, or 1.08 percent, from Monday at 39,773.13. The broader Topix index finished 26.37 points, or 0.97 percent, higher at 2,754.69.
On the top-tier Prime Market, gainers were led by nonferrous metal, wholesale trade and air transportation issues.
The dollar moved little in the upper 151 yen range amid caution about a possible yen-buying intervention by Japanese authorities, dealers said. The government last intervened in the foreign exchange market in October 2022 as the yen inched near the 152 level.
Stocks were in positive territory throughout the day, lifted by exporters as the Japanese currency remained weak. A weak yen boosts overseas profits when repatriated.
An array of chip-related issues also got a boost from the U.S. government's announcement Monday that it will provide up to $6.6 billion in direct funding to Taiwan Semiconductor Manufacturing Co., the world's largest chipmaker, to assist the construction of factories in Arizona, analysts said.
But Masahiro Yamaguchi, head of investment research at SMBC Trust Bank, said, "Investors refrained from chasing the upside ahead of the release of the CPI (on Wednesday) amid uncertainty regarding its outcome."
There is concern that stronger-than-expected consumer price index data may lead the U.S. Federal Reserve to reduce how many rate cuts it will implement this year, he said.
