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Tokyo stocks continue to surge as yen retreats

JIJI

Stocks continued to surge Friday on the Tokyo Stock Exchange, buoyed by the yen’s weakening against the dollar.

The 225-issue Nikkei average soared 313.05 points, or 1.39 percent, to close at 22,811.08. On Thursday, the key market gauge jumped 320.99 points.

The Topix index of all first-section issues finished up 17.48 points, or 0.98 percent, at 1,803.73, after climbing 20.83 points the previous day.

The Tokyo market got off to a strong start thanks to gains in U.S. stocks on Thursday as well as an upward revision to Japan’s gross domestic product data for July-September, announced just before Friday’s opening bell, brokers said.

Also, hefty purchases were prompted by the dollar’s rise above ¥113 after the U.S. Congress on Thursday passed temporary funding legislation to prevent a government default, brokers said.

Investors took heart from the revised GDP data, “especially an improvement in capital spending,” said Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co.

Otsuka said Tokyo stocks were still attracting buybacks after the Nikkei average tumbled 445.34 points Wednesday, the biggest one-day point loss since November 2016.

Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc., said investor sentiment was brightened by a news report saying U.S. President Donald Trump will disclose details of his infrastructure investment plan as early as January.

Friday’s market surge was “like Trump trade,” backed by hopes for massive spending to rebuild infrastructure in the United States, Fujii said.

Rising issues overwhelmed falling ones 1,405 to 543 in the TSE’s first section, while 99 issues were unchanged.

Trading volume grew to 2.005 billion shares from Thursday’s 1.528 billion shares.

Factory automation provider Keyence rose 2.05 percent thanks to the upward revision to capital spending in Japan’s GDP data, brokers said.

Semiconductor-related Tokyo Electron, Sumco and Shin-Etsu Chemical attracted purchases following a slide in its U.S. peers on Thursday.

Other major winners included mobile phone carrier Softbank Group and optical equipment manufacturer Hoya.

By contrast, major ad agency Dentsu met with selling after announcing on Thursday its nonconsolidated sales in November fell 2.7 percent from a year before to ¥126.828 billion.