The Nikkei average rebounded sharply Friday after getting a lift from heavy buying of high-tech shares.
The 225-issue Nikkei average soared 198.93 points, or 0.97 percent, to end at 20,773.56 on the Tokyo Stock Exchange. On Thursday, the key market gauge closed 19.09 points lower.
The Topix index of all first-section issues closed up 13.50 points, or 0.87 percent, at 1,566.10. It gained 5.57 points the previous day.
Heavy purchases were seen for Tokyo Electron and other semiconductor-related issues following their U.S. counterparts’ robust performances Thursday, market sources said.
Japanese chip-linked names “attracted buybacks after their recent falls,” an official at a bank-linked securities firm said.
Hiroaki Kuramochi, chief market analyst at Saxo Bank Securities Ltd., expressed his view that the dollar’s firmness versus the yen prompted futures-linked stock buying and purchases of export-oriented names.
Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co., attributed Friday’s advance to buying by short-term players.
“I guess domestic institutional investors refrained from buying prior to the release of earnings reports” by major Japanese firms next week, Otsuka added.
Volume increased to 1.330 billion shares from Thursday’s 1.149 billion shares.
Gainers far outnumbered losers 1,337 to 697 in the TSE’s first section, while 93 issues were unchanged.
Tokyo Electron ended 4.68 percent higher. Its peers Sumco, Shin-Etsu Chemical and Advantest also surged.
Chemical producer Asahi Kasei was upbeat on expectations for a possible share buyback, brokers said.
Also on the plus side were clothing store chain operator Fast Retailing and cosmetics producer Shiseido.
By contrast, optical equipment producer Olympus and drugmaker Astellas met with selling.
In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average jumped 220 points to 20,780.