Stocks turned modestly higher Monday as investors held active trading in check due to a dearth of major incentives.
The 225-issue Nikkei average rose 27.35 points, or 0.13 percent, to close at 21,285.99 on the Tokyo Stock Exchange. On Friday, the key market gauge fell 204.22 points.
The Topix index of all first-section issues closed up 1.84 points, or 0.12 percent, at 1,547.74, after losing 14.00 points the previous trading day.
The market got off to a weak start following a downturn in U.S. equities Friday caused by the Commerce Department’s ban on transactions with a Chinese supercomputer maker and related firms.
Both indexes remained in negative territory for most of the morning session, although they showed some resilience thanks to buying induced by Shanghai stocks’ strength and higher U.S. index futures in off-hours trading, brokers said.
In the afternoon, the market turned buoyant, albeit modestly, amid renewed expectations for progress in the U.S.-China trade negotiations after a media report cited Chinese Vice Commerce Minister Wang Shouwen as saying talks were ongoing and both Washington and Beijing should compromise.
Wang’s comment preceded a meeting between U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, expected on the sidelines of the two-day Group of 20 summit in Osaka from Friday.
“Investors took a wait-and-see stance” ahead of the Trump-Xi talks as well as the G-20 summit, said Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc.
Given the yen’s sustained strength against the dollar, players were reluctant to actively buy stocks, Fujii added.
Rising issues outnumbered falling ones 1,066 to 966 in the TSE’s first section, while 113 issues were unchanged.
Volume plunged to 830 million shares from Friday’s 1.536 billion shares.
Textile makers were higher, with Toray up 2.41 percent, Teijin up 1.92 percent and Toyobo up 1.78 percent.
Kyocera extended its winning streak to a fifth session, thanks to a media report on the electronics maker’s plans to develop a next-generation battery.
Other winners included job information firm Recruit Holdings and technology giant Sony.
On the other hand, real estate companies met with selling. Among them, Tokyu Land fell by 2.25 percent and Sumitomo Realty by 1.58 percent.
Also on the negative side were chip-making-gear manufacturer Tokyo Electron and mobile phone carrier KDDI.
In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average rose 40 points to end at 21,230.