Business / Financial Markets | TSE DATA & REPORT

Nikkei 225 logs modes rise before Abe-Trump summit

JIJI

The Nikkei 225 average managed to extend its winning streak to a third session Tuesday after moving aimlessly amid a wait-and-see mood prior to a Japan-U.S. summit.

The Tokyo Stock Exchange’s key gauge rose 12.06 points, or 0.06 percent, to end at 21,847.59 after gaining 56.79 points Monday.

By contrast, the Topix, which covers all first-section issues, closed 6.24 points, or 0.36 percent, lower at 1,729.98. It climbed 6.86 points Monday.

Throughout the session, the Nikkei fluctuated around Monday’s closing level as investors retreated to the sidelines ahead of the summit between Prime Minister Shinzo Abe and President Donald Trump in Florida for two days, brokers said.

The Topix drifted mostly in negative territory amid a dearth of major trading incentives.

It was difficult for investors to take large positions before the closely watched meeting, which is likely to affect the dollar-yen exchange rate, brokers said.

The Nikkei’s advance was led by the strength of Fast Retailing, a heavily weighted component of the key price gauge, said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management Co.

Ichikawa also pointed out that continued buybacks of domestic demand-oriented stocks supported the market’s downside.

“Active buying was held in check due to concerns that (possible) remarks by Trump about bilateral trade issues could push up the yen” against the dollar and depress stock prices, he added.

Mitsuo Shimizu, equity strategist at Japan Asia Securities Co., said trading is expected to remain directionless “until the summit offers a fresh trading incentive.”

Falling issues far outnumbered rising ones 1,497 to 517 in the first section, while 68 issues were unchanged.

Volume increased to 1.353 billion shares from 1.310 billion Monday.

Fast Retailing rose 1.42 percent after Mizuho Securities raised its stock price target for the clothing store operator, brokers said.

Drugstore operator Kirindo closed 15.14 percent higher after rewriting its listing-to-date high thanks to robust earnings for the year through February and rosy forecasts for this year, brokers said.

Other major winners included food maker Meiji Holdings and industrial robot producer Fanuc.

By contrast, Gunosy plunged 12.72 percent following a downward revision by Mitsubishi UFJ Morgan Stanley on Monday in its target stock price for the news app provider, brokers said.

Also on the minus side were mobile phone carrier SoftBank and Ono Pharmaceutical.