Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks higher on Wall Street rally

JIJI

Stocks advanced on the Tokyo Stock Exchange Friday in the wake of a sharp rally on Wall Street the previous day.

The 225-issue Nikkei average rose 91.47 points, or 0.44 percent, to end at 20,684.82. On Thursday, the key market gauge added 76.79 points.

The TOPIX index of all first-section issues finished up 5.18 points, or 0.35 percent, at 1,503.84, after losing 1.27 points the previous day.

Buying took the upper hand from the outset, after the Dow Jones industrial average rebounded over 370 points on the New York Stock Exchange Thursday, reflecting a recovery in risk appetite amid a halt in long-term interest rates’ drop.

The Nikkei gained over 180 points by the midmorning, also helped by some resilience the dollar exhibited against the yen after a tumble in early hours.

But the market failed to extend gains in the afternoon, with its topside capped by concerns over the U.S.-China trade conflict, which were fueled by a media report that Washington is holding off a decision to grant licenses that will allow U.S. companies to supply goods to China’s Huawei Technologies Co., brokers said.

“Given no major change in the external situation, the market calmed down a little,” said Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc.

“Trading was slow particularly in the afternoon before the three-day weekend,” Fujii also said. The Tokyo market will be closed Monday for a national holiday.

Rising issues outnumbered falling ones 1,209 to 837 in the TSE’s first section, while 103 issues were unchanged.

Volume inched down to 1.185 billion shares from Thursday’s 1.187 billion shares.

Oil names such as JXTG and Idemitsu attracted purchases thanks to a rise in crude oil prices.

Cosmetics firm Shiseido surged 8.13 percent as its January-June operating profit beat a market consensus.

Mobile phone carriers including KDDI and NTT Docomo firmed along with railways such as JR East. Job information service firm Recruit Holdings also attracted buying.

Meanwhile, Japan Paper, Oji Holdings and other paper producers fell.

Fine chemical firm Fujifilm Holdings plunged 5.96 percent on dismal earnings for April-June.

Also on the negative side were clothing store chain Fast Retailing and industrial robot producer Fanuc.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average rose 90 points to end at 20,650.