The Nikkei 225 average turned moderately higher Tuesday, supported by buying of individual issues with incentives.
The benchmark gauge gained 40.94 points, or 0.19 percent, to end at 21,802.59 after falling 45.85 points Monday.
On the other hand, the Topix, which covers all first-section issues on the Tokyo Stock Exchange, finished down 1.38 points, or 0.09 percent, at 1,618.76. It dropped 5.61 points the previous day.
After getting off to a weaker start, the Nikkei soon popped into positive territory. But the jump prompted selling on a rally, brokers said.
Underpinned by selective buying, the key indicator fluctuated in a narrow range slightly above the previous day’s closing level for most of the afternoon, they added,
The Topix failed to become buoyant throughout the session, although it displayed some resilience in the afternoon.
The Nikkei’s advance was supported mainly by Sony’s surge, which helped the price index gain some 16 points on a closing basis, a market source pointed out.
Investors rushed to buy Sony following a news report that U.S. investment firm Third Point LLC is raising its stake in the technology giant, according to Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc.
But taken as a whole, Tuesday’s market was “weighed on by individual players’ small-lot selling,” Ota said.
“Investors won’t buy in stocks before examining earnings reports” to be released by major Japanese firms from late this month, Yoshihiko Tabei, chief analyst at Naito Securities Co., said.
Falling issues outnumbered rising ones 1,318 to 705 in the first section, while 117 issues were unchanged.
Volume inched up to 1.105 billion shares from 1.057 billion Monday.
Sony rocketed 9.26 percent.
Japan Cash Machine and another cash machine maker Glory shot up 8.57 percent and 7.87 percent, respectively, following the government’s announcement Tuesday morning that it will redesign paper currency.
Other major winners included industrial robot producer Fanuc and chipmaking gear manufacturer Tokyo Electron.
By contrast, furniture retailer Nitori Holdings sagged 2.21 percent as its consolidated operating profit forecast for the year through February 2020 failed to beat market expectations, brokers said.
Also sold were convenience store operator FamilyMart Uny and technology investor SoftBank Group.