/ |

Stocks rise in Tokyo on stimulus hopes


Stocks wiped out earlier losses to end higher on the Tokyo Stock Exchange on Tuesday, supported by hopes for further economic stimulus measures.

The Nikkei rose 45.08 points, or 0.23 percent, from Friday to close at 19,924.89, its highest finish since Aug. 20. On Friday, it rose 20 points. The Tokyo market was closed on Monday for a national holiday.

The Topix ended up 2.76 points, or 0.17 percent, at 1,605.94, after gaining 2.80 points the previous trading day.

The gauges extended their winning streaks for a fifth session.

In the morning session, the market was mostly weaker, moving in a narrow range around the previous trading day’s closing level, weighed down by an overnight fall in U.S. equities and a pause in the yen’s falling, brokers said.

A sense of market overheating also prevailed after recent rises, according to brokers.

In the afternoon, however, stocks cut the earlier losses and gradually added gains toward the close, backed mainly by purchases of small-cap issues.

Hopes for economic stimulus measures to be announced by the Japanese government underpinned the market’s downside, brokers said.

A bank-affiliated securities firm official said that Tuesday’s market demonstrated solidness. “There were few opportunities to buy on dips,” the official said.

The market was buoyed also by growing expectations that revised U.S. real gross domestic product data for July-September, due out later in the day, will show firmness in the U.S. economy, said Yoshihiko Tabei, chief analyst at Naito Securities Co.

An estimated upward revision in the data is unlikely to increase concerns over an interest rate hike by the U.S. Federal Reserve, brokers said.

Concrete stimulus measures by the Japanese government, if they come out, would help boost the market, Tabei said.

Rising issues outnumbered falling ones 1,236 to 554 on the TSE’s first section, while 127 issues were unchanged.

Volume grew to 2,062 million shares from Friday’s 1,844 million shares.

Sharp Corp. surged on news that the realization of support by Innovation Network Corp. of Japan for its turnaround would require its main creditors Mizuho and Bank of Tokyo-Mitsubishi UFJ to waive their debts.

Nitto Denko rose sharply after announcing its cirrhosis drug has been given the U.S. Food and Drug Administration’s fast track designation.

Other major winners included construction firm Obayashi, automakers Toyota and Mazda, daily goods maker Kao and clothing store chain operator Fast Retailing.

By contrast, insurers Tokio Marine and Dai-ichi Life, and banks Mitsubishi UFJ, Mizuho and Sumitomo Mitsui were downbeat.

Mobile phone carriers Softbank Group and KDDI, along with industrial robot maker Fanuc were also on the minus side.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average advanced 70 points to finish at 19,960.

  • disqus_vBekJrf7g5

    And this is Abenomics in a nutshell; ‘stimulus’ to artificially inflate the Nikkei, high Nikkei as ‘proof’ of stimulus success!
    Except that now the government is addicted to high Nikkei, and Nikkei is dependent on continued stimulus.
    Japanese taxpayer picks up the bill.