Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks surge further on continued buybacks

JIJI

Stocks surged further on the Tokyo Stock Exchange on Wednesday thanks to continued buybacks after the recent market tumble.

The 225-issue Nikkei average jumped 463.17 points, or 2.16 percent, to end at 21,920.46, after soaring 307.49 points Tuesday.

The Topix index of all first-section issues closed up 34.66 points, or 2.15 percent, at 1,646.12. It gained 21.90 points the previous day.

The market attracted buying following Wall Street’s sharp rebound Tuesday, market sources said.

Investors also took heart from the yen’s drop versus the dollar, the sources added.

“Pessimism has receded” somewhat in the market about business performance at major Japanese companies following the recent announcements of brisk earnings, said Mitsuo Shimizu, chief strategist at Aizawa Securities Co.

An official of an online securities firm indicated that purchases of high-priced stocks with strong earnings, such as Honda Motor Co., pushed up the key market indexes.

The Tokyo market’s strength came as “Chinese equities moved on a firm note,” an official of an asset management firm said.

Aizawa Securities’ Shimizu said that Tokyo stocks “began to show signs of bottoming out.”

Rising issues overwhelmed falling ones 1,654 to 419 in the TSE’s first section, while 38 issues were unchanged.

Volume fell to 1.811 billion shares from 2.207 billion shares Tuesday.

Automaker Honda climbed 6.47 percent following an upward revision to its consolidated net profit estimate for the year through next March to ¥675 billion from ¥615 billion, brokers said.

In the semiconductor sector, Advantest Corp. closed 12.91 percent higher after raising its operating profit forecast for the year through next March to ¥53 billion from ¥34.5 billion.

Other major winners included mobile phone carrier SoftBank Group Corp. and air conditioner-maker Daikin Industries.

By contrast, steel-makers JFE Holdings Inc. and Kobe Steel met with heavy selling on downward revisions to profit estimates for the year through next March, the brokers said.

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

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average jumped 400 points to 21,880.

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