Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks rebound on buying on dips

JIJI

Stocks rebounded on the Tokyo Stock Exchange on Friday, supported by purchases after the previous day’s plunge.

The 225-issue Nikkei average rose 177.06 points, or 0.82 percent, to end at 21,678.68. It tumbled 417.71 points on Thursday.

The Topix index of all first-section issues finished up 9.85 points, or 0.61 percent, at 1,620.45, after losing 28.89 points the previous day.

Both indexes finished higher for the first time in four days.

The Nikkei soared more than 230 points soon after the opening. The index lost most of the gain later in the morning as the initial buying ran its course.

In afternoon trading, stocks attracted renewed purchases in line with the yen’s drop against the dollar, market sources said.

Friday’s rebound resulted partly from futures-led buying prompted by the yen’s weakening and relatively solid performances of other Asian markets, an official of a bank-linked securities firm indicated.

Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co., pointed to the possibility that the Bank of Japan stepped in to buy exchange-traded funds in the afternoon.

Meanwhile, some brokers said that the market’s topside remained capped by rekindled concerns over U.S.-China trade friction following the recent arrest of Meng Wanzhou, deputy chair and chief financial officer of major Chinese telecommunications equipment-maker Huawei Technologies Co., by Canadian authorities apparently at the request of the United States for her suspected violation of U.S. sanctions on Iran.

Thursday’s tumble of the Tokyo market was blamed on media reports on the arrest.

Investors “found it difficult to build positions” during Friday’s trading prior to the announcement of U.S. jobs data for November later in the day, the bank-linked brokerage official said.

Falling issues slightly outnumbered rising ones 1,028 to 1,016 on the TSE’s first section, while 78 issues were unchanged.

Volume dropped to 1.37 billion shares from Thursday’s 1.51 billion shares.

Drugmaker Eisai closed 2.04 percent higher after tumbling the previous day.

Round One rose for the first time in five days. The amusement facility operator said Thursday that its like-for-like sales in November dropped 1.7 percent from a year before. But investors believe that the sales would have effectively been up by about 1 percent, considering the fact that the reporting month had a total of nine Saturdays, Sundays and public holidays, compared with 10 in November 2017, brokers said.

Other major winners included retailer FamilyMart Uny and clothing shop operator Fast Retailing.

Meanwhile, lower crude oil prices battered oil wholesalers JXTG, Idemitsu and Inpex.

Also on the minus side were chipmaking equipment-maker Tokyo Electron and industrial robot producer Fanuc.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average advanced 170 points to 21,620.