Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks higher on Wall Street rally, weaker yen


Stocks bounced back Wednesday in response to a sharp rally on Wall Street and the yen’s plunge against the dollar as worries receded about the U.S.-China trade war.

The Nikkei advanced 199.69 points, or 0.98 percent, to end at 20,655.13. On Tuesday it tumbled 229.38 points.

The Topix finished up 12.93 points, or 0.87 percent, at 1,499.50, after dropping 17.27 points the previous day.

The Tokyo market got off to a robust start, with investors taking heart from the Dow’s surge and the dollar’s steep rise against the yen following the U.S. government’s announcement that it will put off imposing a 10 percent tariff on some Chinese consumer products including smartphones and laptop computers from Sept. 1 to Dec. 15, brokers said.

After the initial spurt, stocks lost steam as profit-taking pressure grew. But rises in the Shanghai and Hong Kong markets helped keep the Nikkei and Topix afloat throughout the afternoon session.

Investors refrained from continuing active purchases out of concern that the tensions between the economic superpowers will heighten again, an official at a major brokerage house said.

“The postponement does not mean the softening of the U.S. stance against China,” said Yutaka Miura, senior technical analyst at Mizuho Securities Co., stressing that Washington is going to slap tariffs on other products as scheduled.

The administration of U.S. President Donald Trump “merely pushed back settlement of the trade row with China,” Yoshihiko Tabei, chief analyst at Naito Securities Co., observed.

Rising issues outnumbered falling ones 1,673 to 406 in the TSE’s first section, while 70 issues were unchanged.

Volume dropped to 1,063 million shares from Tuesday’s 1,282 million shares.

Apple-related electronic parts makers, such as TDK and Murata Manufacturing, attracted buying, thanks to a surge in the U.S. technology giant’s stock price Tuesday in the wake of the tariff delay announcement.

Toyota, Nissan, Subaru and other automakers went up on the yen’s depreciation.

Oil names rose thanks to higher New York crude oil futures, with Japex jumping 8.59 percent, Cosmo Energy 5.42 percent and Inpex 3.51 percent.

On the other hand, Pan Pacific International Holdings, which runs discount store Don Quijote, dropped 1.49 percent as its operating profit for the business year that ended in June failed to beat a market consensus.

Railway operators including JR East and Odakyu met with selling, and so did Chubu Electric and other major power utilities.

In index futures trading on the Osaka Exchange, the September contract on the Nikkei average advanced 230 points to end at 20,580.

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