TOKYO: Tokyo's benchmark Nikkei 225 index ended 0.10 percent higher on Tuesday after a choppy trading session with investor sentiment brightened by upbeat US economic data while a stronger yen weighed on the market.
The Nikkei added 14.48 points to 14,326.46, while the broader Topix index of all first-section shares gained 0.91 percent, or 10.60 points, to 1,178.87.
The headline index largely remained in positive territory during the afternoon following a volatile morning session that came in the wake of a roller-coaster ride last week that included a 7.3 percent one-day drop.
"Players are still shaken from the previous sessions' falls, leaving the market without a clear direction," said Hideyuki Ishiguro, assistant manager of investment strategy at Okasan Securities.
Investors have been locking in profits after the benchmark Nikkei soared since the beginning of the year, largely driven by Prime Minister Shinzo Abe's pledge to stoke the nation's limp economy with big spending and aggressive central bank monetary easing, which has pushed down the yen.
The weaker currency, in turn, tends to boost shares in Japanese exporters as it makes them more competitive overseas and inflates the value of repatriated foreign income, boosting profits.
Despite the recent volatility, the Tokyo market remained well supported, said Kenichi Hirano, operating officer at Tachibana Securities.
"A relatively resilient US dollar, stronger retail investor appetite and solid fundamentals should support the market," he told Dow Jones Newswires.
In stock trading, Japan's third-biggest mobile operator Softbank jumped 2.11 percent to 5,320 yen on news that the US government was set to approve its $20 billion takeover of Sprint-Nextel.
Fast Retailing, operator of the Uniqlo cheap chic clothing chain, slipped 1.97 percent to 37,350 yen, Toyota fell 0.16 percent to 6,200 yen, Sony lost 0.58 percent to 2,066 yen while Panasonic rose 0.36 percent to 838 yen.
In Tokyo forex trading, the dollar bought 102.11 yen, weakening from 102.32 yen in New York late Tuesday, while the euro also eased to 131.29 yen from 131.61 yen in US trade. (AFP)
