Stocks jumped on the Tokyo Stock Exchange Friday, backed by the yen’s fall against the dollar and an overnight rise in U.S. equities.
The 225-issue Nikkei average shot up 409.39 points, or 1.85 percent, to 22,597.35, its best finish since June 21. It rose 255.75 points on Thursday.
The Topix index of all first-section issues was up 20.39 points, or 1.19 percent, at 1,730.07, after rising 7.80 points the previous day.
The Nikkei surged partly because clothing retailer Fast Retailing, a heavily weighted component of the index, drew strong buying thanks to its brisk earnings report released on Thursday, according to market sources.
Stocks expanded gains in the afternoon, led by futures-led purchases, the sources said.
The gains came as a risk-on mood prevailed, an official of a bank-linked securities firm said, explaining that waning concerns about a trade fight between the United States and China sent the yen lower against the dollar.
The official also noted that buying to cover short positions ahead of the three-day weekend in Japan gave a lift to stocks. The Tokyo financial market will be closed Monday for a national holiday.
Hiroaki Kuramochi, chief market analyst at Saxo Bank Securities Ltd., pointed out that stocks attracted buybacks apparently by hedge funds who took heart from the weak yen.
Rising issues overwhelmed falling ones 1,547 to 473 in the TSE’s first section, while 80 issues were unchanged.
Volume increased to 1.28 billion shares from Thursday’s 1.19 billion shares.
Fast Retailing closed 6.95 percent higher after announcing Thursday its operating profit for the nine months through May jumped 32.3 percent from a year before.
Gunosy soared 21.04 percent with a daily limit gain as the news curation app provider said Thursday that it expects a 29.1 percent jump in its consolidated operating profit for the year through May 2019 from the previous year.
Other major winners included mobile phone carrier SoftBank Group and semiconductor manufacturing equipment maker Tokyo Electron.
By contrast, Concordia Financial Group sagged 8.53 percent on news that its Higashi-Nippon Bank unit will face a regulatory order soon to improve operations over its improper lending practices, brokers said.
Also on the minus side were retailer FamilyMart Uny Holdings and industrial equipment manufacturer Yaskawa Electric.
In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average jumped 390 points to 22,600.