Business / Financial Markets | TSE DATA & REPORT

Nikkei rises modestly on firmer Chinese stocks


The benchmark Nikkei average extended its gain, albeit marginally, in lackluster trading on the Tokyo Stock Exchange Monday, helped by firmer Chinese stocks.

The 225-issue average rose 7.11 points, or 0.03 percent, to end at 21,124.00, after rising 84.89 points Friday.

On the other hand, the Topix index of all first-section issues finished down 6.97 points, or 0.45 percent, at 1,539.74. It gained 5.21 points the previous trading day.

The Tokyo market made a dismal start following a fallback on Wall Street on Friday. The market was dampened further by selling of semiconductor-related issues prompted by U.S. chipmaker Broadcom Inc.’s forecast of a substantial sales decline for the year ending in October, brokers said.

The Nikkei, however, returned to positive territory late in the morning thanks to Shanghai shares regaining strength. Although the key index lost steam later, it managed to stay above the previous session’s closing level for the rest of Monday’s trading.

The Topix index remained under selling pressure for the most of the day’s session.

The Nikkei’s downside was supported by purchases of its heavily weighted components SoftBank Group and Fast Retailing, brokers said.

Yutaka Miura, senior technical analyst at Mizuho Securities Co., said that the key market yardstick was also underpinned by expectations that the U.S. Federal Reserve would hint at an interest rate cut in July at its two-day Federal Open Market Committee meeting starting Tuesday.

Meanwhile, Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co., pointed out that investors refrained from active purchases in the afternoon to wait for a Fed statement to be released after the FOMC meeting.

“A wait-and-see mood would prevail” until before the release of the statement, he added.

Falling issues outnumbered rising ones 1,483 to 570 in the TSE’s first section, while 90 issues were unchanged.

Volume shrank to 934 million shares from Friday’s 1.07 billion shares.

Shopping website operator Enigmo jumped 8.97 percent, following the firm’s announcements of a stock split plan and rosy earnings estimates for February-April.

Online brokerage house Monex Group attracted purchases thanks to a Bitcoin price rise.

Other winners included pay parking lots operator Park24 and convenience store chain FamilyMart Uny.

Japan Display tumbled 7.02 percent due to Taiwanese touch screen maker TPK Holding Co.’s decision to cancel its planned investment in the ailing Japanese firm.

Among other losers were telecommunications equipment maker Anritsu and machinery producer Ebara.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average rose 40 points to end at 21,070.