Tokyo stocks rise on easing US economic woes amid rate cut hopes
The 225-issue Nikkei Stock Average ended up 258.84 points, or 0.64 percent, from Monday at 40,549.54. The broader Topix index finished 20.34 points, or 0.70 percent, higher at 2,936.54.
On the top-tier Prime Market, main gainers were nonferrous metal, farm and fishery and electric power and gas issues.
The U.S. dollar briefly fell to the upper 146 yen range in Tokyo, pressured by growing expectations for monetary easing by the Fed following weaker-than-expected U.S. employment data for July, dealers said.
Stocks climbed following overnight gains on Wall Street, as many market participants bet the Fed may soon cut interest rates to support the world's largest economy after data pointed to a slowdown in the labor market.
But the Nikkei's gains were limited, as investors awaited earnings reports from Japanese companies to assess the impact of U.S. tariffs following last month's trade deal between Tokyo and Washington, brokers said.
"The market is likely to remain top-heavy for the time being, as investors want to see if the trade deal would help improve the earnings outlook, with auto and electronics companies having revised downward their projections," said Maki Sawada, a strategist in the Investment Content Department of Nomura Securities Co.
Among notable gainers, Mitsubishi Heavy Industries rose on hopes for incoming orders after the Australian government said Tuesday that Japan's Mogami-class vessels are the "preferred platform" for general-purpose frigates for the country's navy.
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