Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks extend rally on global risk-on mood and weak yen

JIJI

Stocks extended their winning streak to a sixth session on the Tokyo Stock Exchange on Friday, as buying sentiment grew stronger amid a global risk-on mood and a weaker yen.

The 225-issue Nikkei average advanced 195.00 points, or 0.82 percent, to end at 23,869.93, after edging up 2.41 points on Thursday.

The Topix index of all first-section issues was up 16.42 points, or 0.92 percent, at 1,804.02. It added 1.94 points the previous day.

The Tokyo market got off to a firmer start in the wake of a continued rally on Wall Street overnight, with the Dow Jones industrial average and the S&P 500 index rewriting their respective record highs.

The yen’s weakening against the dollar also lifted investor sentiment, brokers said.

After a pause in its advance in the morning, the market again gathered steam in the afternoon, thanks chiefly to strong performances of other Asian markets, they noted.

Stocks went up while resisting selling to lock in profits after a recent strong run and ahead of a three-day weekend through Monday, an official of a major brokerage firm said.

Foreign investors, in particular, hunted a wide range of issues “as if they were buying indiscriminately,” the official said.

A steady increase in the transaction value on the TSE eased nonresidents’ concerns over the course of the market, an official at another brokerage house said.

Hiroaki Kuramochi, chief market analyst at Saxo Bank Securities Ltd., said Shanghai stocks’ robust performance brightened market sentiment.

Rising issues outnumbered falling ones 1,591 to 456 in the TSE’s first section, while 63 issues were unchanged.

Volume increased to 2.08 billion shares, from 1.67 billion shares on Thursday.

Suruga Bank went limit-up following a media report that its founding family plans to sell shares in the scandal-hit bank.

Showa Denko advanced 5.53 percent thanks to buybacks, brokers said.

Other major winners included megabank groups Mitsubishi UFJ and Sumitomo Mitsui as well as mobile phone carriers SoftBank Group and KDDI.

On the other hand, Kao lost 3.64 percent after Morgan Stanley MUFG Securities Co. revised down its investment rating on the daily goods manufacturer.

Also lower were game-maker Nintendo and clothing retailer Fast Retailing.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average added 290 points to end at 23,750.