Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks end modestly higher amid lack of incentives

JIJI

Stocks managed to extend gains Tuesday amid a lack of powerful trading incentives.

The Nikkei 225 average rose 24.30 points, or 0.11 percent, to end at 21,754.27 after surging 454.05 points Monday.

The Topix, which covers all first-section issues on the Tokyo Stock Exchange, finished 4.99 points, or 0.31 percent, higher at 1,589.84. It gained 33.71 points Monday.

After opening slightly lower, stocks soon turned buoyant, helped by a continued rise on Wall Street.

The Nikkei and Topix both dipped into negative territory again on profit-taking. But they recouped losses in midmorning trading thanks to buying by investors “who took heart from Shanghai shares resisting falling substantially despite turmoil in Hong Kong,” brokers said.

The market moved narrowly for the rest of the day due to a dearth of strong incentives, they said.

“Some players underpinned the market by hunting cyclicals,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co., adding that they were relieved at U.S. President Donald Trump’s pledge not to slap tariffs on additional Chinese goods worth $300 billion at least for the time being.

On the other hand, the market was weighed down by selling by investors who remained skeptical about the proposed resumption of the U.S.-China trade negotiations actually yielding fruit, he said.

Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., noted that “investors were waiting for next trading cues” such as an announcement of a schedule for ministerial-level trade talks between the United States and China.

Rising issues outnumbered falling ones 1,429 to 628 in the first section, while 92 issues were unchanged.

Volume dropped to 1.002 billion shares from 1.202 billion Monday.

Fujifilm Holdings rose 1.45 percent after the technology firm announced it will team up with major German drugmaker Bayer AG to develop a novel immunotherapy for cancer using induced pluripotent stem (iPS) cells.

Chipmaking gear manufacturer Tokyo Electron advanced for the fifth consecutive session, helped by an overnight rise in U.S. semiconductor stocks.

Among other winners were electronics maker Fujitsu and insurer Sompo Holdings.

Meanwhile, Sumitomo Dainippon Pharma dropped 1.74 percent due to the firm’s suspension of clinical trials of a pancreatic cancer drug.

Also sold were resources developer JXTG and online fashion mall operator Zozo.