TOKYO: Tokyo stocks closed 1.44 percent higher Tuesday, tracking gains on Wall Street and as shares in Softbank surged after it confirmed a $20 billion takeover of US-based Sprint Nextel.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange closed up 123.38 points to 8,701.31, while the broader Topix index of all first-section shares rose 1.30 percent, or 9.41 points, to 732.40.
Softbank shot up 9.56 percent to 2,485 yen after it said late Monday it will pay about $20 billion to take 70 percent of Sprint-Nextel in the biggest-ever overseas acquisition by a Japanese firm.
The announcement, which came after the Tokyo market closed, capped days of speculation after Softbank confirmed it was in talks over a buyout, sending its shares slumping 17 percent on Friday and 5.3 percent on Monday.
Gains on Wall Street and in Europe as well as a slightly weaker yen also helped push up the Tokyo bourse, helped by upbeat US retail sales data.
China on Monday said its inflation rate slowed in September.
"Some signs that Chinese inflation remains under control are fuelling speculation that the central bank will have more leeway to implement further monetary policy easing steps and work as an extra tonic for the market," said Hideyuki Ishiguro, strategist at Okasan Securities.
Markets were also lifted by better-than-expected US corporate earnings, said Kenichi Hirano, analyst at Tachibana Securities.
The Dow Jones Industrial Average climbed 0.72 percent to close at 13,424.23 on Monday.
In Tokyo trade, Sony jumped 2.40 percent to 937 yen while Nikon was up 1.24 percent at 1,950 yen on a weaker yen.
Toyota Motor rose 1.16 percent to 3,030 yen despite reports that it plans to halt production next week at its biggest plant in China as demand for Japanese cars slumped amid a bitter territorial row between Tokyo and Beijing.
Panasonic rose 1.22 percent to 494 yen on reports that the firm has set up a 600 billion yen ($7.6 billion) credit line with its major lenders.
On currency markets, the dollar bought 78.84 yen in Tokyo afternoon trade, against 78.66 yen in US trading on Monday.
The euro bought $1.2963 and 102.24 yen from $1.2950 and 101.89 yen. (AFP)
