Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks rebound on continued Wall Street rally

JIJI

Stocks staged a solid rally on the Tokyo Stock Exchange on Friday in the wake of U.S. equities’ continued advance overnight.

The 225-issue Nikkei average rose 187.11 points, or 0.89 percent, at 21,259.09. On Thursday, it sank 125.58 points.

The Topix index of all first-section issues closed up 16.70 points, or 1.09 percent, at 1,554.25, after losing 6.60 points the previous day.

Stocks spurted from the outset, with sentiment brightened by Wall Street’s three-day rally on a rosy U.S. business outlook shown by the Federal Reserve Bank of Philadelphia as well as strong housing starts and building permit numbers for April, brokers said. Brisk earnings reports by Cisco Systems and Walmart also pushed up the Dow Jones Industrial Average markedly on the New York Stock Exchange.

The Tokyo market, however, lost steam toward noon, pressured by Shanghai stocks’ weak performance following a U.S. presidential order effectively banning domestic firms from using telecommunications gear of China’s Huawei Technologies Co.

In the afternoon, the market failed to go up further, although its downside was supported by repurchases by foreign investors, brokers said.

“Investors refrained from tilting their positions either way amid persistent uncertainties over U.S.-China trade talks,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co.

Ichikawa pointed to a Chinese state media commentary indicating Beijing’s reluctance to continue the negotiations.

“Players took to the sidelines to brace for a possible downturn on Wall Street Friday,” said Yutaka Miura, senior technical analyst at Mizuho Securities Co.

Rising issues outnumbered falling ones 1,705 to 377 in the TSE’s first section, while 58 issues were unchanged.

Volume dropped to 1.349 billion shares from Thursday’s 1.461 billion shares.

Technology giant Sony rocketed 9.89 percent, after announcing on Thursday a share buyback plan and a tie-up with Microsoft Corp. in cloud-based gaming and content steaming services.

Daio Paper shot up 5.90 percent thanks to the paper mill’s forecasts of substantial profit rises for the current business year through next March.

Other winners included apartment rental firm Leopalace21 and network integrator Net One Systems.

On the other hand, home and housing construction materials seller Nice Holdings extended its losing streak.

Among other losers were online fashion mall operator Zozo and metal producer Mitsui Kinzoku.

In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average went up 220 points to end at 21,270.

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