Japan Market gains on bargain hunting

Japan shares surged higher on Tuesday, 19 January 2021, with the benchmark Nikkei 225 Index and Topix index both settling higher, as investors sought out bargains following the market's recent retreat after hitting 30-year highs last week and the yen depreciation to lower 104 level against greenback. However, market gains capped as investors awaited comments from Treasury Secretary nominee Janet Yellen on stimulus later today and the Bank of Japan monetary policy decisions on Thursday.

At closing bell, the 225-issue Nikkei Stock Average advanced 391.25 points, or 1.39%, to 28,633.46. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 10.35 points, or 0.56%, to 1,865.84.

Investors now look ahead to comments from Treasury Secretary nominee Janet Yellen on U.S. stimulus at the Senate confirmation hearing later today, with her prepared remarks calling on the federal government to "act big".

Also, Joe Biden is due to be inaugurated on Wednesday as the next U.S. president, while the Bank of Japan and the European Central Bank will unveil their monetary policy decisions on Thursday.

Heavy machinery-maker Mitsui E&S and engineering firm Modec attracted avid buying following a news report that the government is planning commercialization of minor metal mining around the remote Pacific island of Minamitorishima.

Fast Retailing jumped 3.1%, backed by the news that its causal clothing chain, Uniqlo Co., will start a smartphone payment service.

CURRENCY NEWS: The Japanese yen was at 104.01 per dollar, as compared to yesterday's trading at around 103.70 per dollar.

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