TOKYO: Tokyo shares extended a global rally Tuesday, riding high on centrist Emmanuel Macron’s first-round French presidential election win, though traders remain on edge as North Korea marks a key military anniversary.

The moderate’s first place on Sunday — and his expected run-off victory over far-right candidate Marine Le Pen on May 7 — has injected some much-needed confidence into world equity markets after a recent run of selling fuelled by geopolitical fears.

There had been concerns that a strong showing for Eurosceptic, anti-immigration Le Pen could see France pull out of the eurozone, or even the EU, leading to the possible collapse of the bloc.

“Uncertainty around the French presidential election has fallen significantly,” Okasan Online Securities said in a commentary.

“It was the biggest risk event for the first half of the year and it now seems to have passed with no surprises.”

Tokyo’s benchmark Nikkei 225 index gained 1.08 percent, or 203.45 points, to close at 19,079.33, following a 1.37 percent rise Monday. The broader Topix index of all first-section issues added 1.07 percent, or 16.02 points, to end the day at 1,519.21.

US and European markets tracked an Asian advance Monday, with the Nasdaq on Wall Street posting another record close.

Investors are also eyeing the start of Japan’s corporate earnings season this week.

“Expectations for solid corporate earnings will support sentiment for local equities,” Japan Asia Securities’ equity strategist Mitsuo Shimizu told Bloomberg News.

However, North Korea marks the 85th anniversary of the founding of its military Tuesday, with worries leader Kim Jong-Un could use it to stage another nuclear test or missile launch.

The celebrations in Pyongyang come as tensions between the hermit state and the US are stretched following a series of rocket launches and sabre-rattling against Washington while US President Donald Trump has warned Kim not to test him.

“Investors can’t help but be cautious over North Korea risks,” said Shimizu.

In share trading, information technology giant NEC jumped 3.44 percent to 270 yen after it upgraded its earnings forecast for the recently ended business year through March.

Toyota added 1.91 percent to finish at 6,000 yen, while Mitsubishi UFJ Financial Group rose 2.19 percent to 703.1 yen. Sony lost 0.40 percent to 3,715 yen.

Japan Post rose 2.37 percent to 1,377 yen. The firm’s president is to hold a news conference later in the day, with speculation swirling that the former state-owned giant would report a huge loss in connection with an earlier investment in Australian logistics company Toll Group.

The dollar strengthened to 110.11 yen from 109.78 yen in New York.—AFP