Tokyo stocks rise on repurchases

JIJI

Stocks gained Monday, buoyed by buybacks after the recent drops.

The Nikkei 225 average climbed 165.45 points, or 0.76 percent, to end at 21,812.00 after rising 139.01 points Thursday. The Tokyo Stock Exchange was closed Friday for a national holiday.

The Topix, which covers all first-section issues on the TSE, closed 3.24 points, or 0.20 percent, higher at 1,632.20. It gained 13.07 points Thursday.

The key market yardsticks moved on the sunny side for most of the day Monday.

A solid performance of Chinese equities lifted investor sentiment, market sources said.

Tokyo stocks attracted buying “on hope for a technical rally of New York stocks” later Monday, Yutaka Miura, senior technical analyst at Mizuho Securities Co., said, referring to the Dow Jones Industrial Average’s recent plunges.

An official of an online brokerage firm noted that the dollar’s rise above ¥113 served as a tail wind for the Tokyo stock market.

Construction- and transport-linked issues were boosted by news Friday that the city of Osaka was selected to host the 2025 World Expo, brokers said.

Yoshihiko Tabei, chief analyst at Naito Securities Co., indicated that the news was a positive surprise to investors, saying it “had not been factored” in the market.

Rising issues outnumbered falling ones 1,119 to 915 in the first section, while 78 issues were unchanged.

Volume increased to 1.339 billion shares from 1.201 billion Thursday.

General contractor Obayashi, logistic service firm Kamigumi and Nankai Electric Railway were among issues that attracted buying linked to the 2025 Expo, brokers said.

Other major gainers included clothing retailer Fast Retailing and convenience store operator FamilyMart Uny.

By contrast, oil names Japex, Inpex and JXTG met with heavy selling following a tumble in crude oil prices.

Employment information service firm Recruit Holdings and drugmaker Shionogi were also on the minus side.