Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks bounce back, thanks to bargain hunters

JIJI

Stocks rebounded Tuesday, helped by buying after recent plunges.

The Nikkei 225 average rose 277.94 points, or 1.25 percent, to end at 22,549.24 after plunging 423.36 points Monday.

The Topix, which covers all first-section issues on the Tokyo Stock Exchange, closed 12.47 points, or 0.74 percent, higher at 1,687.91. It lost 27.01 points Monday.

Both indexes moved in plus territory for most of the day, supported by a weaker yen and purchases on declines for mainstay issues, brokers said.

The Nikkei and Topix gained steam in the late afternoon on the back of renewed buying by bargain hunters, brokers said.

“While the Nikkei showed strength, Tokyo stocks were generally mixed amid a continuing global risk-off mood,” an official of a major securities firm said, pointing out that declining issues outpaced advancers for most of the session.

When trading came to a close, rising issues outnumbered falling ones 1,112 to 910 in the first section, while 87 issues were unchanged.

Market sentiment improved a little after the recent plunges, but high volatility is likely to continue for sometime, the major securities firm official said.

There were few buying incentives to drive Tokyo stocks to higher ground, said Masayuki Otani, chief market analyst at Securities Japan Inc.

Some investors took a wait-and-see stance ahead of the release of important economic data this week, including China’s gross domestic product data for July-September, Otani said.

Volume decreased to 1.260 billion shares from 1.400 billion Monday.

Oil names were buoyant thanks to a rise in crude oil prices. Major gainers included JXTG and Inpex.

Fast Retailing gained 3.96 percent, helped by buybacks after a recent sell-off, brokers said.

Other major winners included mobile phone carrier SoftBank Group, semiconductor-related Tokyo Electron and technology giant Sony.

Inbound tourism-related issues moved on a weak note, reflecting investor worries about a possible weakening of consumption by visitors from abroad, mainly those from China, brokers said. They included cosmetics makers Shiseido, Kose and Fancl, as well as department store operators J. Front Retailing and Takashimaya.

Also lower were parcel delivery company Yamato Holdings and employment information service firm Recruit Holdings.

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