Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks rebound from three-day losing streak thanks to buying on dips

JIJI

Stocks staged a rally Thursday, thanks to a wave of buying on dips after three straight days of losses.

The 225-issue Nikkei average rose 211.02 points, or 0.99 percent, to close at 21,591.99 on the Tokyo Stock Exchange, after shedding 99.93 points Tuesday. The Tokyo market was closed Wednesday for a national holiday.

The Topix index of all first-section issues ended up 11.10 points, or 0.65 percent, at 1,727.39. It retreated 3.68 points the previous trading day.

After the market opened weaker, purchases on declines soon helped lift the key indexes to positive territory, brokers said.

The market later came under the profit-taking pressure induced by the yen’s strength against the dollar, with the Topix briefly sinking into negative territory before regaining steam in the afternoon thanks to continued buying on dips, brokers said.

Thursday’s advance was led by “purchases of high-tech stocks after their falls on Tuesday,” said Tsuyoshi Horota, general manager for investment research and investor services at SMBC Nikko Securities Inc.

A sense of ease spread among investors after the U.S. Federal Reserve issued a “not hawkish” statement following the Federal Open Market Committee’s two-day policy-setting meeting, an official of an asset management firm said.

The Fed decided to raise interest rates as expected and maintained its projection for two additional rate hikes this year.

The market gained renewed upward momentum toward the close in line with the yen’s weakening, the official added.

Rising issues outnumbered falling ones 1,304 to 689 on the TSE’s first section and 84 issues stayed unchanged.

Volume grew to 1.385 billion shares from Tuesday’s 1.181 billion shares.

Oil companies Japex, Inpex, JXTG, Idemitsu, Cosmo Energy. and Showa Shell were buoyant thanks to higher in crude oil prices.

Construction machinery makers Komatsu and Hitachi Construction rose after U.S. giant Caterpillar fared well in the New York market Wednesday, brokers said.

Also on the plus side were clothing retailer Fast Retailing Co. and industrial robot-maker Fanuc.

By contrast, airlines JAL and ANA Holdings retreated on concerns over bulging fuel expenses in the wake of rising crude oil prices, brokers said.