Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks bounce back on U.S. market rally

JIJI

Stocks turned higher on the Tokyo Stock Exchange on Friday, following an overnight rebound in U.S. equities.

The 225-issue Nikkei average shot up 110.44 points, or 0.50 percent, to end at 22,200.56, after plunging 187.85 points on Thursday.

The Topix index of all first-section issues closed up 1.96 points, or 0.12 percent, at 1,616.93, recovering from a 15.71-point slump the previous day.

The Tokyo market opened sharply higher in the wake of a sound Wall Street rally Thursday on stronger-than-expected retail sales in the United States in March and brisk earnings reports by U.S. companies, brokers said.

But after the initial buy orders were executed, the market gradually paired gains amid the dearth of powerful buying incentives.

Stocks recoiled after they were pressured by profit-taking on Thursday, said Mitsuo Shimizu, chief strategist at Aizawa Securities Co.

But the market’s upside was limited as foreign players began taking Easter holidays and domestic investors refrained from active trading ahead of the weekend, Shimizu pointed out.

It was difficult to tilt positions either way before the start in Japan of the full-fledged earnings season next week and the special 10-day Golden Week holiday beginning April 27, brokers said.

Rising issues outnumbered falling ones 1,147 to 899 in the TSE’s first section, while 95 issues were unchanged.

Volume dropped to 928 million shares from Thursday’s 1.188 billion shares.

Semiconductor-related issues, such as chipmaking gear-maker Tokyo Electron and test device manufacturer Advantest, attracted purchases thanks to overnight rises in their U.S. peers.

Nintendo rocketed 14.12 percent following media reports the previous day that the Guangdong provincial government in China had approved sales of the Nintendo Switch console and game software.

Among other winners were air conditioner-maker Daikin and auto parts supplier Denso.

On the other hand, domestic demand-oriented issues, including railway operator JR East and realtor Sumitomo Realty & Development, met with selling.

Parcel delivery firm Yamato Holdings dived on selling sparked by its downward revisions to earnings estimates for the year that ended in March.

Also sold were Daiwa House and mobile phone carrier KDDI.

In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average rose 90 points to end at 22,200.