Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks rebound on buying on dips

JIJI

Stocks rallied on the Tokyo Stock Exchange on Wednesday, boosted by buybacks and buying on dips following the previous day’s plunge.

The 225-issue Nikkei average gained 276.95 points, or 1.24 percent, to end at 22,555.43. On Tuesday, the key market gauge tumbled 401.85 points.

The Topix index of all first-section issues closed up 8.83 points, or 0.51 percent, at 1,752.75. It fell 27.51 points the previous day.

Although the market opened firmer thanks to buybacks following Tuesday’s tumble, the key market gauges fell into negative territory after the buying ran its course, market sources said.

The Nikkei average popped up into the sunny side in midmorning trading and expanded its gains in the afternoon thanks to buying on dips, while the broader Topix index swung back into the plus side in late trading, according to the sources.

The market “was unexpectedly firm” despite persistent concerns over a U.S.-China trade war, said Yoshihiko Tabei, chief analyst at Naito Securities Co.

Tabei also said that investors “hunted defensive issues due to uncertainties over the course of (U.S.-China) trade friction.”

Speculative purchases induced by the dollar’s rise above ¥110 pushed up the Nikkei average, he noted.

Brokers said investor sentiment was lifted by the stability of other Asian stock markets.

Rising issues outnumbered falling ones 1,287 to 728 in the TSE’s first section, while 76 issues were unchanged.

Trading volume rose to 1.59 billion shares from Tuesday’s 1.49 million shares.