Tokyo stocks rise for first time in four sessions after long weekend

12-Aug-2020 Intellasia | JapanTimes | 6:02 AM Print This Post

Tokyo stocks rose for the first time in four trading sessions on Tuesday after a three-day weekend, reflecting overnight gains on Wall Street.

The 225-issue Nikkei average shot up 420.30 points, or 1.88 percent, to end at 22,750.24. On Friday, the key market gauge shed 88.21 points.

The Tokyo market was closed on Monday for a national holiday.

The Topix finished up 39.22 points, or 2.54 percent, at 1,585.96, following a 3.14-point fall the previous trading day.

Welcoming a seven-day winning streak through Monday for the Dow Jones industrial average, Tokyo investors rushed to buy back stocks from the outset of Tuesday’s trading, brokers said.

Investor sentiment improved after US President Donald Trump signed executive orders on novel coronavirus relief measures on Saturday.

The key Tokyo market indexes continued to fluctuate far above Friday’s closing levels in the afternoon, supported by robust Asian stock markets.

“Market players were reassured (by the executive orders) as they perceived that (the virus measures would help) prevent a major slump in the US economy,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co.

Brokers noted that the Tokyo market was also supported by a rise in Hong Kong stocks, despite the arrest of the founder of a pro-democracy newspaper and other figures on Monday.

An official at a bank-affiliated securities company said that “concerns that selling pressure will mount (on the Hong Kong market) receded” after the market started off higher.

Rising issues far outnumbered falling ones 1,810 to 330 in the first section of the Tokyo Stock Exchange, while 33 issues were unchanged. Volume increased to 1.627 billion shares from Friday’s 1.189 billion shares.

Oil names, including Cosmo Energy and Idemitsu, attracted active buying, reflecting higher crude oil prices.

Eisai surged 13.74 percent, after the drugmaker said it has submitted to the US Food and Drug Administration an application for approval for a drug for Alzheimer’s disease.

Among other major winners were silicon wafer producer Shin-Etsu Chemical and job information service provider Recruit Holdings.

On the other hand, Mitsui O.S.K. Lines fell 0.99 percent, in response to a fuel oil spill off the Indian Ocean island country of Mauritius from a cargo carrier chartered by the shipping company.

Game maker Bandai Namco and information security firm Trend Micro also lost ground.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average climbed 380 points to end at 22,720.

https://www.japantimes.co.jp/news/2020/08/11/business/financial-markets/tokyo-stocks-rise-first-time-four-sessions-long-weekend/#.XzJ3lIgzbs1

 


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