Business / Financial Markets | TSE DATA & REPORT

Stocks climb in Tokyo, with buying on dips snapping losing streaks for Nikkei and Topix

JIJI

Stocks rebounded moderately on the Tokyo Stock Exchange on Monday thanks to buying on dips, with the benchmark Nikkei average snapping its six-session losing streak.

The 225-issue Nikkei average gained 66.03 points, or 0.30 percent, to end at 22,373.09, after shedding 180.88 points Friday.

The Topix index of all first-section issues closed up 3.30 points, or 0.20 percent, at 1,687.61 after seven straight sessions of declines. It had retreated 8.10 points the previous trading day.

The Tokyo market’s topside was weighed down by concerns over a U.S.-China trade war, following media reports Friday that U.S. President Donald Trump had threatened to impose fresh tariffs on a further $267 billion worth of imports from China, according to market sources.

The market “attracted a wave of small-lot buying” after stock prices fell to affordable levels, an official at a bank-linked securities firm said.

The official also said that investor sentiment was lifted by “an improvement in capital spending” shown in Japan’s revised gross domestic product data for April-June, released just before Monday’s opening bell.

Yutaka Miura, senior technical analyst at Mizuho Securities Co., also attributed the Tokyo market’s top-heaviness to sluggish Chinese stock prices against the backdrop of fears over intensifying U.S.-China trade friction.

The market’s topside was capped by worries about U.S. trade policy toward Japan, following a remark by Trump on Friday that Japan would regret if it fails to strike a bilateral trade deal with the United States, according to an official at an asset management firm.

Rising issues outnumbered falling ones 1,202 to 808 in the TSE’s first section, while 97 issues were unchanged.

Volume dropped to 1.1 billion shares from Friday’s 1.3 billion.

Financial issues — including mega-bank groups Mitsubishi UFJ, Sumitomo Mitsui and Mizuho, and insurers Dai-ichi Life, Sompo Holdings and Tokio Marine — were upbeat following a rise in long-term U.S. interest rates Friday, brokers said.

Other major winners included drug maker Eisai and industrial robot producer Fanuc.

In contrast, Kirin Holdings closed 1.10 percent lower after SMBC Nikko Securities Inc. on Friday revised down its investment rating and target stock price for the beverage maker.

Also on the minus side were mobile phone carrier SoftBank Group and cosmetics maker Shiseido.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average lost 20 points to close at 22,360.