Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks rebound on buying on dips

JIJI

Stocks bounced back on the Tokyo Stock Exchange Thursday, helped by purchases after recent falls.

The 225-issue Nikkei average gained 139.01 points, or 0.65 percent, to end at 21,646.55. On Wednesday, the key market gauge fell 75.58 points.

The Topix index of all first-section issues closed up 13.07 points, or 0.81 percent, at 1,628.96. It retreated 9.78 points the previous day.

Although the market’s topside was capped by selling on a rally, both indices moved on the positive side for most of Thursday’s session.

“A sense of relief spread” among investors as the S&P 500 index and the tech-heavy Nasdaq composite index turned higher on Wednesday, said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management Co.

Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., noted that a wide range of issues attracted small-lot buying, apparently by individual investors.

“Trading was thin” ahead of the three-day weekend in Japan and Thanksgiving Day in the United States on Thursday, Ota also said. The Tokyo market will be closed on Friday for a national holiday.

Yutaka Miura, senior technical analyst at Mizuho Securities Co., attributed Thursday’s rally to purchases to cover short positions ahead of the long weekend.

Rising issues far outnumbered falling ones 1,451 to 580 in the TSE’s first section, while 81 issues were unchanged.

Volume decreased to 1.20 billion shares from 1.39 billion shares on Wednesday.

Price comparison website operator Kakaku.com closed 5.80 percent higher after announcing a share buyback plan on Wednesday.

Cosmetics maker Shiseido, discount store operator Don Quijote and other foreign tourist demand-oriented names were upbeat after the Japan National Tourism Organization said Wednesday that the number of foreign visitors to Japan in October grew 1.8 percent from a year before to 2,640,600.

Other major winners included drugmaker Astellas and supermarket and convenience store operator FamilyMart Uny.

By contrast, Mitsubishi UFJ ended 1.43 percent lower after The New York Times reported Wednesday that U.S. authorities are investigating the megabank group over an alleged violation of anti-money laundering rules involving North Korea.

Mobile phone carrier SoftBank Group and clothing retailer Fast Retailing were also on the minus side.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average rose 180 points to end at 21,700.