Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks, helped by buying on dips, rebound after Tuesday's rout

JIJI

Stocks rebounded on the Tokyo Stock Exchange on Wednesday, helped by dip buying after the previous day’s rout.

But some investors refrained from active buying ahead of the full-fledged start of an earnings reporting season, brokers said.

The 225-issue Nikkei average rose 80.40 points, or 0.37 percent, to end at 22,091.18, after tumbling 604.04 points Tuesday.

The Topix index of all first-section issues closed up 1.35 points, or 0.08 percent, at 1,652.07. It plunged 44.59 points the previous day.

The Tokyo market saw crosscurrents of buying on dips in anticipation of a rally and selling of mainstay issues in the morning, with the Nikkei and Topix moving without direction, the brokers said.

The closely watched indexes firmed in the afternoon, backed by continuing dip buying amid an upturn in Shanghai stocks, they said.

“Considering the plunge the previous day, Wednesday’s rebound was weak,” an official of a major securities firm said.

“Concerns over earnings reports are growing on a global scale” following downward revisions to business outlooks and earnings released this week by some major Japanese and U.S. companies, an official of a bank-affiliated securities firm said.

Active buying was held in check as investors were selective, mainly buying back shares with brisk earnings, said Yoshihiko Tabei, chief analyst at Naito Securities Co.

Investors also worried about external factors, including developments related to the alleged murder of a Saudi journalist, elevated U.S. interest rates, Italy’s budget and talks on Britain’s planned exit from the European Union, Tabei said.

Rising issues outnumbered falling ones 1,283 to 729 in the TSE’s first section, while 96 issues were unchanged.

Volume increased to 1.417 billion shares from 1.405 billion shares Tuesday.

Nidec gained 1.60 percent as investors were cheered by the electronic parts maker’s consolidated earnings for April-September released Tuesday, brokers said.

Oki Electric Industry jumped 9.51 percent a day after the company revised up its consolidated earnings forecasts for April-September.

Other major winners included clothing retailer Fast Retailing and mobile phone carrier KDDI.

Lower crude oil prices hurt oil names, among them JXTG and Idemitsu.

Subaru plunged 7.02 percent after the automaker lowered its consolidated earnings forecasts for April to September on Tuesday.

Also lower were game-maker Nintendo and semiconductor-related Sumco and Shin-Etsu Chemical.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average advanced 110 points to end at 22,030.

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