TOKYO, April 13 (Xinhua) -- Tokyo stocks closed higher Wednesday as investors sought out issues that had lost ground in the previous day's rout when the Nikkei dropped to a near-one month low, with sentiment underpinned by U.S. inflation data meeting market expectations.
The 225-issue Nikkei Stock Average gained 508.51 points, or 1.93 percent, from Tuesday to close the day at 26,843.49.
The broader Topix index, meanwhile, added 26.43 points, or 1.42 percent, to finish at 1,890.06.
Brokers here said that investors picked up battered shares and were relived following the U.S. consumer price index data for March, a key gauge of inflation, released Tuesday meeting median market expectations.
They added the 8.5 percent increase in inflation from the same month a year ago, eased investor concerns abut the U.S. Federal Reserve taking far more aggressive action to tackle rising inflation.
"Shares were sold too much yesterday as investors were too cautious about the U.S. CPI data," Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities, was quoted as saying.
"It turned out that the core inflation figure was in line with the market expectations, so investors bought back stocks today," Arisawa said.
Other market strategists also said issues had been oversold the previous day, with the yen's weakness supporting buying.
"Investors bought on dips as stocks were sold too much the previous day. The market was also supported by a rise in U.S. stock futures and the yen's weakening," Shingo Ide, chief equity strategist at the NLI Research Institute, was quoted as saying.
By the close of play, marine transportation, mining and rubber product issues comprised those that gained the most on the Prime Market, with issues that rose outpacing those that fell by 1,516 to 279, while 44 ended the day unchanged.
Tech issued that had retreated recently bounced back, with chip-making equipment maker Tokyo Electron lifting the Nikkei the most, with its 3.3 percent advance.
Air-conditioning maker Daikin Industries was another notable winner, leaping 4.0 percent by the close.
Marine transportation issues were also bought back, with Nippon Yusen up 4.8 percent, while Kawasaki Kisen finished 4.2 percent higher.
Drugmaker Shionogi weighed on the market, however, plunging 11.1 percent amid reports that tests on animals had shown its oral treatment for COVID-19 could cause pregnancy problems.
In February, the drugmaker applied for approval of the drug with Japan's health ministry and is still awaiting approval from regulators.
On the Prime Market on Wednesday, 1,165.82 million shares changed hands, dropping from Tuesday's volume of 1,175.86 million shares.
The turnover on the third trading day of the week came to 2,823.97 billion yen (22.39 billion U.S. dollars). ■