TOKYO, (MILLAT/APP/AFP) – Tokyo shares ended sharply
higher on Tuesday after the previous day’s sell-off, with dealers hopeful Donald Trump can push through his tax and spending agenda despite last week’s healthcare bill collapse.
A drop in the yen against the dollar from the previous day also
helped support exporters, although comments from a top Federal Reserve official continue to weigh on the US unit.
Global markets were sent skidding Monday after Trump’s repeal of
Obamacare fell at the first hurdle, fuelling fears he will struggle to push through promised economy-boosting measures.
However, Asian investors took heart in a relatively positive lead
from Wall Street, where shares pared early plunges to end only slightly lower.
The benchmark Nikkei 225 index closed up 1.14 percent, or 217.28
points, at 19,202.87. The Topix index of all first-section issues rose 1.34 percent, or 20.44 points, to 1,544.83.
“What seems to be going on in US stocks is that President Trump is
being given the benefit of the doubt that he will be able to deliver on tax and infrastructure,” said Greg McKenna, chief market strategist at AxiTrader.
The dollar, which has tumbled against its major peers since the start
of the year, also saw a pick-up towards the end of Monday US trade.
While the greenback was at 110.66 yen in Tokyo, stable compared with
110.65 yen late in New York, it was above the levels seen in Asia on Monday.