Stocks staged a strong rally Tuesday, buoyed by buybacks that swelled in line with the yen’s drop against the dollar.
The Nikkei 225 average soared 531.04 points, or 2.61 percent, to end at 20,864.21. On Friday, the key market gauge tumbled 418.11 points. The market was closed Monday for a national holiday.
The Topix, which covers all first-section issues on the Tokyo Stock Exchange, ended 33.20 points, or 2.16 percent, higher at 1,572.60. It fell 29.63 points Friday.
Repurchases boosted “mainstay stocks of exporters,” said Yoshihiko Tabei, chief analyst at Naito Securities Co.
Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co., attributed Tuesday’s surge to buybacks by short-term players after stocks were oversold Friday.
Foreign investors hunted major firms that reported brisk earnings Friday, according to an official of a bank-linked securities firm.
Investor sentiment was also buoyed by a media report that U.S. lawmakers struck a tentative agreement to avert another federal government shutdown, brokers said.
Winners overwhelmed losers 1,791 to 301 in the first section, while 35 issues were unchanged.
Volume edged down to 1.460 billion shares from 1.463 billion Friday.
Chipmaker Renesas Electronics closed 16.26 percent higher with a daily-limit gain as its consolidated operating profit for the year ended in December beat market expectations, brokers said.
Automakers such as Toyota, Mazda and Subaru were upbeat on the yen’s depreciation, according to market sources.
Other major winners included air conditioner manufacturer Daikin and clothing store chain operator Fast Retailing.
By contrast, Shiseido ended 1.50 percent lower as the cosmetics maker’s consolidated operating profit forecast for the year ending next December fell short of market consensus, brokers said.
Also on the minus side were Takeda Pharmaceutical and oil company JXTG.