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Tokyo stocks rebound sharply as yen weakens past 112

JIJI

Stocks rebounded sharply Thursday, boosted by the dollar’s first move above ¥112 in roughly half a year.

The 225-issue Nikkei average rose 255.75 points, or 1.17 percent, to close at 22,187.96 on the Tokyo Stock Exchange after retreating 264.68 points Wednesday.

The Topix index of all first-section issues finished up 7.80 points, or 0.46 percent, at 1,709.68. It lost 14.25 points the previous day.

The Tokyo market attracted purchases induced by the dollar’s first rise above ¥112 in about six months, brokers said, adding that gains in other Asian markets also lifted investor sentiment.

Akira Tanoue, senior investment strategist at Nomura Securities Co., attributed Thursday’s rebound to the weaker yen as well as hopes for brisk earnings at major Japanese firms expected to release their business results later this month.

Selling triggered by Tuesday’s announcement by the administration of U.S. President Donald Trump of the decision to launch procedures for imposing additional tariffs on Chinese goods “has run its course,” an official of a bank-affiliated securities firm said.

Investors “have become used to” the U.S.-China trade dispute, Hiroaki Hiwada, strategist at Toyo Securities Co. said. Buybacks inspired by the yen’s drop helped the market rally, he noted.

Brokers, however, agreed that the U.S.-China trade row will continue to cast a shadow over the Tokyo market.

Rising issues outnumbered falling ones 1,181 to 820 in the TSE’s first section, while 98 issues were unchanged.

Volume fell to 1.192 billion shares from 1.366 billion shares on Wednesday.

Retailer FamilyMart Uny Holdings closed 2.81 percent higher after announcing Thursday afternoon that its pretax profit for March-May surged 59.9 percent from a year before to ¥20,851 million.

Drug maker Eisai attracted purchases after its recent falls.

Other major winners included mobile phone carrier SoftBank Group and clothing retailer Fast Retailing.

By contrast, oil names JXTG Holdings, Showa Shell, Cosmo Energy and Inpex met with selling, following a plunge in crude oil prices.

Also on the minus side were semiconductor-related Tokyo Electron and trading house Mitsubishi.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average surged 300 points to 22,210.