Business / Financial Markets | TSE DATA & REPORT

Stocks snap four-session losing streak on bargain-hunting

JIJI

Stocks on Monday snapped a four-session losing streak as investors moved to buy issues that had fallen sharply.

The Nikkei 225 average gained 99.53 points, or 0.47 percent, to end at 21,125.09. On Friday, the Nikkei tumbled 430.45 points.

The Topix, which covers all first-section issues on the Tokyo Stock Exchange, finished 9.00 points, or 0.57 percent, higher at 1,581.44 after falling 29.22 points Friday.

After opening firmer, the market came under selling pressure stemming from the yen’s strengthening against the dollar.

But a halt to the yen’s rise later in the morning prompted investors to “buy the dips” in view of Friday’s sell-off, markets sources said.

Shanghai shares’ brisk performances also helped buoy Tokyo stocks, they added.

“The Nikkei’s drop below 21,000 in the morning fueled bargain-hunting,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management Co.

Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., pointed out that the market “attracted small-lot buying” mainly by individual investors amid a dearth of market-moving news.

“The market’s topside was heavy” as investors shied away from purchasing stocks actively due to uncertainties over Brexit and worries about a global economic slowdown, said Mitsuo Shimizu, chief strategist at Aizawa Securities Co.

Rising issues outnumbered falling ones 1,335 to 730 in the first section, while 69 issues were unchanged.

Volume dropped to 1.045 billion shares from Friday’s 1.672 billion.

Omron surged 14.83 percent with a maximum allowable single-day point gain, after the Nihon Keizai Shimbun reported Friday that the industry automation firm will replace Pioneer, set to be delisted, as a Nikkei 225 component on March 18.

Other major winners included clothing store chain Fast Retailing and technology conglomerate SoftBank Group.

By contrast, yakitori chain Torikizoku plunged 4.64 percent on its profit warning for the year ending in July.

Also on the negative side were optical equipment maker Olympus and electronic parts supplier Murata Manufacturing.