Stocks advanced further on the Tokyo Stock Exchange on Thursday, following an overnight rise on Wall Street on hopes for easing of U.S.-China trade friction.
The 225-issue Nikkei average climbed 213.44 points, or 0.99 percent, to end at 21,816.19, after surging 454.73 points Wednesday.
The Topix index of all first-section issues closed up 10.04 points, or 0.62 percent, at 1,616.65. It gained 31.30 points the previous day.
Market sentiment was buoyed by renewed expectations for progress in trade talks between the world’s two largest economies after a media report that China is considering revising its “Made in China 2025” initiative, brokers said.
Investors also took heart from a strong performance of Shanghai stocks, brokers said.
“Overseas investment funds that had sold Japanese stocks in anticipation of a decline moved to buy them back following the U.S. rise,” an official of an online securities firm said.
The market regained some composure, Yoshihiko Tabei, chief analyst at Naito Securities Co., said, pointing to a rise in recent laggards including shipping firms.
The Nikkei grew top-heavy above 21,800 amid a dearth of fresh buying incentives, an official of a midsize securities firm said.
Rising issues outnumbered falling ones 1,583 to 482 in the TSE’s first section, while 61 issues were unchanged.
Volume decreased to 1.332 billion shares from 1.480 billion shares Wednesday.
China-linked issues attracted buying on hopes for progress in U.S.-China trade talks, brokers said. Major gainers included industrial robot producer Fanuc Corp., construction machinery-maker Komatsu and trading house Mitsui & Co.
Airlines ANA Holdings Inc. and Japan Airlines Co. were upbeat on the back of the declining trend in crude oil prices.
Takeda Pharmaceutical Co. jumped 7.05 percent thanks to a positive rating action by Tokai Tokyo Research Institute Co. on Wednesday.
Also on the positive side were clothing retailer Fast Retailing Co. and game-maker Nintendo Co.
On the other hand, Showa Denko K.K. dropped 4.48 percent after Citigroup Global Markets Japan Inc. revised down its investment rating for the industrial materials maker.
Other major losers included mobile phone carrier Softbank Group Corp. and tire-maker Bridgestone Corp.
In index futures trading on the Osaka Exchange, the December contract on the Nikkei average rose 190 points to end at 21,850.