Business / Financial Markets | TSE DATA & REPORT

After Nikkei’s fall, Tokyo stocks bounce back as investors buy on dips

JIJI

Stocks closed higher on the Tokyo Stock Exchange on Friday as buying on dips set in after the benchmark Nikkei average fell over 1,000 points briefly the previous day.

The 225-issue Nikkei average gained 103.80 points, or 0.46 percent, to end at 22,694.66. On Thursday, it plunged 915.18 points, or 3.89 percent, its third-biggest daily point loss this year, following Wall Street’s rout Wednesday.

The Topix index of all first-section issues closed up 0.59 point, or 0.03 percent, at 1,702.45. It fell 62.00 points the previous day.

The Nikkei gave up over 260 points as soon as the Tokyo market opened after the Dow Jones industrial average lost an additional 2.13 percent Thursday.

But the Tokyo market index moved into positive territory in afternoon trading following a rebound in Chinese stocks, brokers said.

The Tokyo market “was ready to rebound at any moment” a day after its plunge, an official of an online brokerage house said. Thursday’s tumble made stocks undervalued enough for investors to place buy orders, brokers said.

The Nikkei average’s rebound reflected “large-lot purchases of Nikkei futures contracts” amid rises in the Shanghai composite stock index and the Dow futures, an official of a Japanese securities firm said.

“A sense of relief spread” among investors thanks to stable movements of Shanghai stock prices, said Hiroaki Kuramochi, chief market analyst at Saxo Bank Securities Ltd.

Market players also took heart from “the stability of the (dollar-yen) exchange rate,” the online brokerage house official said.

Rising issues outnumbered falling ones 1,130 to 926 on the TSE’s first section, while 53 issues were unchanged.

Volume fell to 1.69 billion shares from Thursday’s 1.95 billion.

Factory automation-related issues, including Yaskawa Electric and Fanuc, attracted purchases following their recent falls.

Other major winners included mobile phone carrier SoftBank Group and cosmetics maker Shiseido.

By contrast, convenience store chain operator Lawson slumped 6.23 percent after reporting Thursday double-digit declines in fiscal first-half operating and net profits and a reduction in its full-year gross operating revenue forecast.

Also on the minus side were clothing store chain operator Fast Retailing and retailer FamilyMart Uny.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average rose 70 points to 22,650.