Tokyo stocks close higher on hopes for global economic revival

Tokyo stocks closed higher Tuesday on continued hopes for global economies to recover as many countries have eased coronavirus-linked restrictions and allowed business activities to increase.

The 225-issue Nikkei Stock Average gained 263.22 points, or 1.19 percent, from Monday to close the day at 22,325.61.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 18.93 points, or 1.21 percent, to finish at 1,587.68.

Wall Street's solid showing overnight set a positive tone in early trading in Tokyo, local brokers said, as manufacturing data in the United States improved.

The latest data from the ISM showed that national factory activity increased to a reading of 43.1 last month from 41.5 in April, which marked the lowest level since April 2009.

A reading below 50, however, still indicates a contraction in manufacturing, which accounts for 11 percent of the U.S. economy, with May marking the third successive month of contraction, market analysts here highlighted.

In later trade some investors opted not to chase the market higher and lock in gains made after the market's recent run, and amid concerns over protests in the United States.

Metal-linked issues gained ground on hopes that increased manufacturing would lead to the need for more raw materials.

As such, Pacific Metals climbed 2.9 percent, while Mitsui Mining and Smelting gained 3.9 percent.

Retailers also found favor on hopes for increased patronage following the further easing of coronavirus-related restrictions on Monday for all stores not selling daily essentials.

Department store operator Marui Group gained 4.2 percent, while Seven i Holdings closed the day 3.1 percent higher.

By the close of play, security house, real estate and machinery-oriented issues comprised those that gained the most, and issues that rose outpaced those that fell by 1,716 to 391 on the First Section, while 62 ended the day unchanged.

On the main section on Tuesday, 1.335 billion shares changed hands, rising from Monday's volume of 1.201 billion shares.