Japan shares hit over 3-month high on hopes of economic recovery boosting corporate results

Japanese shares hit a more than three-month high on Tuesday, as hopes for global economic recovery with more countries gradually reopening after coronavirus-related lockdowns bolstered expectations for corporate earnings.

The Nikkei index rose 0.91% to 22,263.43 by 0200 GMT, its highest level since Feb. 26, with industrial and telecommunication shares leading the advance as investors bet on a rebound in activity both domestically and overseas.

Japanese stocks also got a boost from overnight Wall Street gains, after data showed U.S. manufacturing recovered from an 11-year low, offering more signs that the global economy is at last starting to steady since the coronavirus outbreak.

The Nikkei has rallied around 36% from its low of March 16 as coronavirus infections in Japan slowly fell, prompting the officials to remove lockdown restrictions and allow more retailers to resume operations.

However, some investors remain cautious due to uncertainty caused by mass protests in the United States against police brutality and diplomatic tension between Washington and Beijing over civil liberties in Hong Kong.

There were 202 advancers on the Nikkei index against 19 decliners on Tuesday.

The largest percentage gainers in the index were industrial machinery maker IHI Corp up 6.59%, followed by shipbuilder Mitsui E&S Holdings Co Ltd gaining 5.23%, and auto parts maker NTN Corp up by 4.91%.

The largest percentage losers were drugs maker Daiichi Sankyo Co Ltd down 3.4 %, followed by shipbuilder Hitachi Zosen Corp losing 1.73%, and processed food maker Nichirei Corp down by 1.49%.

The broader TOPIX index rose 1.07% to 1,585.61.

The volume of shares traded on the Tokyo Stock Exchange's main board was 0.53 billion, compared to the average of 1.38 billion in the past 30 days.