Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks rise further on Wall Street vigor, Mexico tariff suspension

JIJI

Stocks gained further ground on the Tokyo Stock Exchange on Monday, following a continued surge on Wall Street on Friday and a U.S. decision to refrain from imposing punitive tariffs on all imports from Mexico.

The 225-issue Nikkei average jumped 249.71 points, or 1.20 percent, to end at 21,134.42, after rising 110.67 points on Friday. The key market gauge closed above 21,000 for the first time since May 29.

The Topix index of all first-section issues finished up 20.55 points, or 1.34 percent, at 1,552.94. The broader index gained 7.48 points the previous trading day.

The market got off to a strong start, after the Dow Jones industrial average extended its rising streak to a fifth day on the New York Stock Exchange on Friday amid growing expectations for an interest rate cut by the U.S. Federal Reserve.

The rate cut hopes swelled in the wake of the Labor Department’s announcement of far weaker-than-expected growth in nonfarm payrolls in the United States in May, brokers said.

Investors were also heartened by U.S. President Donald Trump saying on Twitter feed late Friday that plans to slap the tariff were “indefinitely suspended,” they said.

After the initial spurt, however, the market lost steam and moved narrowly for the rest of the Monday session.

“Investors stopped buying actively to see how U.S. and European stocks will move later,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co.

But Tokyo stocks were able to maintain strength as they received continued support from players anticipating bullish U.S. and European markets, he added.

Yutaka Miura, senior technical analyst at Mizuho Securities Co., pointed out that the market failed to stage a powerful rally because of persistent investor skepticism about the United States and China settling their trade row soon.

Rising issues outnumbered falling ones 1,783 to 294 on the TSE’s first section, while 64 issues were unchanged.

Volume expanded to 1.163 billion shares from Friday’s 1.005 billion shares.

Toray shop up 6.15 percent, after a media report that the textile-maker plans to seek by March next year health ministry approval for a “single-drop” blood test kit to detect cancer.

Nissan, Mazda and other automakers rose as concerns over deterioration in their earnings receded thanks to the U.S. decision not to impose tariffs on goods from Mexico, their export base to the United States.

Other winners included antenna-maker Denki Kogyo and oil company Idemitsu.

On the other hand, travel agency H.I.S. tumbled 13.42 percent, due to lower-than-expected operating profit for the six months through April, brokers said.

Among other losers were Aozora Bank and mobile phone carrier KDDI.

In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average gained 230 points to end at 21,150.