Stocks rebounded sharply on the Tokyo Stock Exchange on Friday amid receding jitters over U.S.-China trade friction, sending the benchmark Nikkei above 22,000 for the first time in over one week.
The 225-issue Nikkei average soared 556.01 points, or 2.56 percent, to end at 22,243.66, the first finish above 22,000 since Oct. 24. It plunged 232.81 points on Thursday.
The Topix index of all first-section issues closed up 26.71 points, or 1.64 percent, at 1,658.76, after shedding 14.07 points the previous day.
The Nikkei average retook 22,000 briefly in the morning following Wall Street’s advance Thursday, as concerns receded over the U.S.-China trade friction following telephone talks between U.S. President Donald Trump and Chinese President Xi Jinping, market sources said.
The key market indicator pared its early gains due to selling on a rally in early afternoon trading. But later, its gains expanded to over 600 points temporarily after a news report that Trump asked senior officials to draw up a possible deal with China on trade.
“A compromise has come into sight” between the two countries, Mitsuo Shimizu, chief strategist at Aizawa Securities Co., said, referring to the news report.
Market participants have waited for such a deal “for months,” Shimizu also said.
He attributed Friday’s sharp rebound also to “purchases inspired by upward revisions” to earnings forecasts announced by major Japanese companies recently.
In addition, investors bought back telecommunications issues that tumbled Thursday, brokers said.
Rising issues overwhelmed falling ones 1,495 to 561 in the TSE’s first section, while 55 issues were unchanged.
Volume rose to 1.818 billion shares from 1.782 billion shares on Thursday.
China-linked issues, such as industrial equipment manufacturers Fanuc and Yaskawa Electric, were buoyant.
Mobile phone carriers NTT Docomo, KDDI and SoftBank Group were also upbeat a day after their plunge.
Semiconductor-related names, such as Tokyo Electron, Sumco and Shin-Etsu Chemical, were strong after their U.S. peers fared well in New York on Thursday.
Railcar-maker Nippon Sharyo went limit-down with a 16.87 percent loss after announcing Thursday that an express train it made that crashed in Taiwan last month failed to meet part of the specifications set by the Taiwanese railway operator.
Other major losers included automaker Suzuki and technology giant Sony.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average skyrocketed 690 points to end at 22,230.