Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks rebound on yen's descent

JIJI

Stocks bounced back on the Tokyo Stock Exchange on Monday thanks to the yen’s drop against the dollar.

The 225-issue Nikkei average gained 109.54 points, or 0.48 percent, to end at 22,804.04. On Friday, the key market gauge shed 128.76 points.

The Topix index of all first-section issues was up 5.40 points, or 0.30 percent, at 1,786.84, after falling 7.57 points the previous trading day.

After initial weakness stocks were lifted by buying on dips in the morning, and accelerated their upswing in the afternoon on the yen’s slide against the dollar, market sources said.

“The yen’s drop prompted futures-led buybacks,” said Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc.

Ota indicated that stocks were not affected by a deepening divide on trade issues between U.S. President Donald Trump and the leaders of other Group of Seven major industrialized countries at their weekend summit in Canada.

The fissures over trade were “within expectations,” Ota said.

Yoshihiko Tabei, chief analyst at Naito Securities Co., said the G-7 summit “failed to offer major fresh selling incentives.”

Investors refrained from trading stocks vigorously as they have already shifted their attention to a U.S.-North Korea summit on Tuesday, as well as the U.S. Federal Reserve’s policy meeting set for Tuesday and Wednesday, brokers said.

Rising issues outnumbered falling ones 1,189 to 800 in the TSE’s first section, while 99 issues were unchanged.

Volume plunged to 1.132 billion shares from 1.610 billion shares Friday.

TEPCO ended higher after the victory of a candidate, backed by the ruling coalition, in Sunday’s gubernatorial election in Niigata Prefecture fueled hopes for the reactivation of a key nuclear power plant owned by the company in the central prefecture, brokers said.

Clothing-retailer Fast Retailing Co., mobile-phone-carrier SoftBank Group and industrial-robot-producer Fanuc Corp. were among major winners.

By contrast, Sekisui House sagged 6.98 percent after the home-builder Friday reported a 7.2 percent decline in consolidated operating profit for the three months ended in April.

Also on the minus side were Suruga Bank and cosmetics-maker Shiseido Co.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average rose 170 points to end at 22,790.