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Tokyo Stock Exchange snaps four-session losing streak aided by buying on dips

JIJI

The market snapped its four-session losing streak on the Tokyo Stock Exchange on Wednesday, aided by buying on dips.

The 225-issue Nikkei average gained 36.65 points, or 0.16 percent, to end at 23,506.04, after tumbling 314.33 points on Tuesday.

The Topix index of all first-section issues finished up 2.74 points, or 0.16 percent, at 1,763.86. It shed 31.53 points the previous day.

After opening firmer, the key market gauges turned lower later in the morning amid a dearth of fresh major buying incentives, market sources said.

The indexes stayed in plus territory for most of the afternoon session, supported by purchases on declines, according to the sources.

Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., expressed his belief that the stock market was still in a correction phase. “I can’t say purchases on declines were strong,” he said.

It was easy for stocks to rebound following their recent falls, but “no incentive to step up purchases emerged,” an official at an online brokerage house said.

Active buying was held in check ahead of the announcements of earnings reports by major companies later this week, an official of an asset management firm pointed out.

Rising issues outnumbered falling ones 1,137 to 894 in the TSE’s first section, while 79 issues were unchanged.

Volume dropped to 1.345 billion shares from Tuesday’s 1.568 billion shares.

Tokai Carbon closed 7.05 percent higher as the issue was deemed undervalued after it fell as much as 15 percent over the past five sessions.

Skylark rose 1.92 percent after the restaurant chain said Tuesday that its same-store sales in September grew 2.2 percent from a year before.

Also on the plus side were clothing store chain operator Fast Retailing and semiconductor manufacturing equipment-maker Tokyo Electron.

Kirindo tumbled 9.69 percent after the drug store chain reported an operating profit for the fiscal first half on Tuesday that was short of the company’s target, brokers said.

Other major losers included industrial robot producer Fanuc and mobile phone carrier SoftBank Group.

In index futures trading on the Osaka Exchange, the December contract on the Nikkei average finished up 60 points at 23,530.