Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks mark first rise in Reiwa Era trading

JIJI

The key Nikkei average snapped its seven-session losing streak on the Tokyo Stock Exchange Wednesday thanks chiefly to a rebound in Shanghai stocks, showing its first buoyancy since trading in the Reiwa Era started on May 7.

The 225-issue stock average finished up 121.33 points, or 0.58 percent, at 21,188.56. On Tuesday, it dropped 124.05 points.

The Topix index of all first-section issues rose 9.17 points, or 0.60 percent, to end at 1,544.15, after a 6.16-point slump the previous day.

The Tokyo market got off to a strong start in the wake of a Wall Street upturn brought about by U.S. President Donald Trump’s remarks that eased worries about the U.S.-China trade dispute.

In a Twitter post Tuesday, Trump said that the United States will strike a deal with China when the time is right. Trump also told reporters at the White House that the trade dispute was a “little squabble.”

Stocks sank into negative territory and remained under selling pressure almost throughout the morning session. But both the Nikkei and Topix indexes rebounded in the afternoon on buybacks and purchases induced by Shanghai equities’ brisk performance, brokers said.

China’s retail sales and industrial output in April and fixed-asset investment in January-April, all reported on Wednesday, were weaker than expected.

But Shanghai shares fared well because the dismal numbers let investors expect the Chinese government to implement stimulus measures, brokers said.

Although Tokyo stocks rebounded in tandem with Shanghai equities, players had difficulty buying actively amid a lack of powerful incentives after the end of ministerial-level U.S.-China trade talks in Washington, Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc., pointed out.

“Investors are now waiting for comments by U.S. and Chinese government officials about the envisaged next round of ministerial talks,” said Akira Tanoue, senior investment strategist at Nomura Securities Co.

Rising issues outnumbered falling ones 1,359 to 716 in the TSE’s first section, while 65 issues were unchanged.

Volumes fell to 1.52 billion shares from Tuesday’s 1.73 billion shares.

Kureha enjoyed a 13.23 percent rise, thanks to the chemical maker’s rosy operating profit projection for the current business year through next March and its plan to buy back own shares.

Realtor Mitsubishi Estate and chipmaker Kureha enjoyed a 13.23 percent rise, thanks to the chemical maker’s rosy operating profit projection for the current business year through next March and its plan to buy back own shares.

On the other hand, pharmaceutical leader Takeda tumbled 7.82 percent on its loss forecasts for the year through March 2020.

Chemical firm Kuraray lost 7.42 percent as its group operating profit estimate for the year ending in December failed to beat a market consensus.

In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average rose 130 points to end at 21,160.