Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks rebound after last week's tumble

JIJI

Stocks staged a rally Monday, buoyed by dip buying after a tumble late last week.

The Nikkei 225 average gained 132.05 points, or 0.62 percent, to end at 21,506.88. On Friday, the key market gauge plunged 441.36 points.

The Topix, which covers all first-section issues on the Tokyo Stock Exchange, finished 2.04 points, or 0.13 percent, higher at 1,594.20 after shedding 24.49 points Friday.

The market was boosted by futures-led purchases from investors anticipating a rebound in stock prices, market sources said.

The market attracted buybacks following Friday’s plunge, an official of a midsize securities firm said, adding that Japanese shares “were oversold” recently.

“Domestic demand-oriented issues were hunted,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management Co.

But active “buying of stocks sensitive to economic fluctuations was held in check” reflecting concerns over an economic slowdown in China following weaker than expected Chinese economic data released Friday, Ichikawa also said.

“Individual investors were inactive, and small-capitalization issues were sold,” Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., said, stressing that he “can’t be optimistic” about Monday’s rally.

Despite rises in the key market yardsticks, falling issues outnumbered rising ones 1,420 to 648 in the first section, while 60 issues were unchanged.

Volume decreased to 1.362 billion shares from 1.871 billion Friday.

NH Foods was buoyant after announcing plans Friday to buy back its shares.

Tokyo Gas and Tepco were also upbeat.

Other major winners included supermarket and convenience store operator FamilyMart Uny and mobile phone carrier SoftBank Group.

Meanwhile, Askul closed 6.46 percent lower after the online stationery retailer said Friday that its operating profit for the six months through November plunged 55.4 percent from a year earlier to ¥1.029 billion.

Also on the minus side were oil company Showa Shell and children’s wear retailer Nishimatsuya.

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