Tokyo stocks rebound on robust overseas markets

20-Jan-2021 Intellasia | JapanTimes | 6:02 AM Print This Post

Tokyo stocks bounced back Tuesday, reflecting robust overseas markets.

The 225-issue Nikkei average of selected issues listed on the first section of the Tokyo Stock Exchange surged 391.25 points, or 1.39%, to close at 28,633.46. On Monday, the benchmark index fell 276.97 points.

The Topix index of all first-section issues ended 10.35 points, or 0.56%, higher at 1,855.84 following an 11.12 point drop the previous day.

Despite a dearth of fresh trading incentives, as the US market was closed Monday for Martin Luther King Jr. Day, Tokyo stocks enjoyed a robust start thanks to a rise in the US Dow Jones industrial average futures in off-hours trading, brokers said.

Helped by rises in other Asian markets, including Hong Kong and South Korean exchanges, both the Nikkei and Topix indexes stayed above Monday’s closing levels in the afternoon.

Buying on dips following the Tokyo market’s two-day fall until Monday also supported the market throughout the day, the brokers added.

Some market sources said that buying sentiment was also fueled by anticipation of market-friendly remarks by US Treasury Secretary nominee Janet Yellen at a Senate confirmation hearing later Tuesday.

“Robust performances of some major component issues, including Fast Retailing and SoftBank Group, also helped keep the Nikkei buoyant throughout the day’s trading,” said Maki Sawada, strategist at Nomura Securities Co.

The clothing store chain pushed the key index up by around 100 points, she added.

On the TSE first section, decliners slightly outnumbered gainers 1,187 to 912, while 89 issues were unchanged. Volume increased to 1.006 billion shares from Monday’s 908 million shares.

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

Taiyo Yuden soared 7.71 percent as SMBC Nikko Securities Inc. raised its target stock price for the electronics parts supplier.

Fast Retailing jumped 3.06%, backed by the news that its causal clothing chain, Uniqlo Co., will start a smartphone payment service.

Among other major winners were soy sauce producer Kikkoman and air conditioner-maker Daikin.

On the other hand, retail giant Seven & i Holdings and daily goods producer Kao suffered drops.

In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average advanced 480 points to end at 28,670.

 

Category: Japan

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