Tokyo stocks edge up at close on bargain hunting

Tokyo stocks closed one percent higher on Thursday as bargain-hunting after three straight days of losses offset a stronger yen.

The benchmark Nikkei 225 index edged up 0.99 percent, or 211.02 points, to close at 21,591.99, while the broader Topix index was up 0.65 percent, or 11.10 points, at 1,727.39.

The yen rose against the dollar after the Federal Reserve lifted interest rates but indicated it would stick to a plan for three in total this year, rather than the four that some experts had forecast.

Investors continued to buy the Japanese unit despite the US central bank suggesting it would speed up its pace of hikes next year, citing an improving outlook for the world's biggest economy.

The dollar changed hands at 105.92 yen in Asian trade, down from 106.04 yen in New York and 106.38 yen in Tokyo earlier Wednesday.

Okasan Online Securities chief strategist Yoshihiro Ito said in a commentary that investor "appetite for buying on dips (is) growing" after three straight days of declines.

Traders remain nervous about a possible global trade war as it emerged Donald Trump plans to impose sanctions on China for what he calls its "theft" of US intellectual property.

The move would come just weeks after his controversial tariffs on steel and aluminium imports, which sparked worldwide condemnation. Eyes are also on trade talks between the US and the European Union.

In Tokyo share trading, Canon closed 2.22 percent higher at 3,945 yen, electronic parts maker Kyocera was up 0.66 percent at 6,054 yen, and engineering and electronics firm Hitachi was up 1.21 percent at 793.3 yen.

Machinery makers were also among the winners, with Komatsu jumping 4.21 percent to 3,706 yen and Kawasaki Heavy up 1.14 percent at 3,525 yen.