Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks rebound sharply on bargain hunting

JIJI

Stocks rallied sharply on the Tokyo Stock Exchange on Wednesday, bolstered by bargain hunting following their recent plunges.

The 225-issue Nikkei average rose 454.73 points, or 2.15 percent, to end at 21,602.75. On Tuesday, the key market gauge fell 71.48 points.

The Topix index of all first-section issues closed up 31.30 points, or 1.99 percent, at 1,606.61, after losing 14.50 points the previous day.

Buying outpaced selling as investors stepped up buybacks in view of increased affordability after the Topix hit a year-to-date low the previous day.

The market’s strong recovery was also backed by renewed hopes for easing of U.S.-China trade friction, after a positive tweet from U.S. President Donald Trump and the reported release on bail of the chief financial officer of Chinese telecommunications equipment-maker Huawei Technologies Co., who was arrested by Canadian authorities last week at the request of the United States, brokers said.

Tuesday was the last trading day for investors to sell stockholdings and raise funds for purchases of shares in mobile phone company SoftBank Corp., which will make its TSE debut on Dec. 19. Payments for SoftBank shares will be accepted until Friday.

“The market passed a turning point” in terms of the supply-demand balance, an official of a bank-affiliated securities firm said.

Higher U.S. index futures in off-hours trading and a weaker yen also buoyed investor sentiment, brokers said.

Hiroaki Kuramochi, chief market analyst at Saxo Bank Securities Ltd., said profit-taking gained strength when the Nikkei exceeded 21,500.

Rising issues outnumbered falling ones 1,867 to 213 in the TSE’s first section, while 43 issues were unchanged.

Volume slightly increased to 1.480 billion shares from 1.476 billion shares on Tuesday.

High-tech names gained ground on renewed expectations for progress in U.S.-China trade talks, brokers said. Major gainers included electronic parts maker Murata Manufacturing and semiconductor-related Tokyo Electron and Advantest.

Ajinomoto jumped 4.09 percent after JPMorgan Securities Japan Co. revised up its investment rating and target stock price for the major seasoning-maker.

Also on the plus side were clothing retailer Fast Retailing, game-maker Nintendo and power firm TEPCO.

By contrast, major losers included retailer FamilyMart Uny and railway operator JR East.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average surged 530 points to end at 21,660.

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