TOKYO, April 21 (Xinhua) -- Tokyo stocks closed higher on Thursday as a rise in U.S. stock futures gave tech issues a boost, while the yen regaining some ground against the U.S. dollar after rapid declines recently added support.
The 225-issue Nikkei Stock Average added 335.21 points, or 1.23 percent, from Wednesday to close the day at 27,553.06.
The broader Topix index, meanwhile, gained 12.85 points, or 0.67 percent, to finish at 1,928.
Dealers here said that investors were able to take a breather from volatile currency moves as after the yen fell to a 20-year low at 129.43 versus the dollar a day earlier -- a fresh 20-year low -- the Japanese currency recovered to the lower 128 zone as investors secured gains after U.S. Treasury yields took a dip overnight.
The yen's rapid decline recently to a number of 20-year lows has been triggered by rising U.S. Treasury yields and the prospect of a widening monetary policy gap between the U.S. Federal and its hawkish stance and the Bank of Japan's commitment to its ultra-loose policy.
As a result, the central bank here has intervened into the bond market three times in as many months, in contrast to other central banks including the Fed, to defend its zero-percent yield target, market strategists here highlighted.
The yen's comparative weakness, however, and likelihood to plunge again in the upcoming days and weeks ahead, while a boon for some exporters, is hammering companies involved in importing energy and commodity goods due to recent prices soaring.
"Investors are focused on the impact of rising raw material costs," Masahiro Yamaguchi, head of investment research at SMBC Trust Bank, was quoted as saying.
"Japanese companies could struggle as it is difficult to pass on costs to consumers without pay hikes," he said.
A wait-and-see mood also prevailed over the market as investors hit the sidelines ahead of a meeting later in the day between Japan's Finance Minister Shunichi Suzuki and U.S. Treasury Secretary Janet Yellen in Washington, the strategists added.
By the close of play, metal product, precision instrument and machinery issues comprises those that gained the most, and rising issues outpaced those that fell on the Prime Market by 1,242 to 528, while 69 ended the day unchanged.
Tech issues advancing on the back of a rise in U.S. stock futures included Tokyo Electron climbing 3.5 percent, Advantest gaining 2.3 percent and Screen Holdings, for its part, ending the day 2.7 percent higher.
Sony Group added 1.5 percent, although office equipment camera maker Canon slipped 2.2 percent, despite upgrading its profit forecast.
Agricultural machinery maker Kubota was a notable winner jumping 2.0 percent, after announcing a hefty share buyback plan the previous day, while the biggest drag on the Nikkei was Tokyo Electric Power Holdings, operator of the stricken Daiichi nuclear power plant in Fukushima Prefecture, who tumbled 4.3 percent.
On the Prime Market on Thursday, 1,029.12 million shares changed hands, dropping from Wednesday's volume of 1,146.54 million shares.
The turnover on the penultimate trading day of the week came to 2,518.71 billion yen (19.65 billion U.S. dollars). ■