Tokyo stocks rebounded Tuesday thanks to repurchases prompted by an overnight rally on Wall Street amid some optimism growing over U.S.-China trade relations.
On the Tokyo Stock Exchange, the 225-issue Nikkei average rose 195.04 points, or 0.96 percent, to end at 20,456.08, after diving 449.87 points Monday.
The Topix index of all TSE first-section issues closed up 11.66 points, or 0.79 percent, at 1,489.69. It lost 24.22 points the previous day.
A wide range of issues attracted hefty buybacks at the outset, after U.S. President Donald Trump’s comments suggesting the possibility of Washington and Beijing resuming trade talks helped the Dow Jones Industrial Average stage a sound rally on the New York Stock Exchange on Monday.
But the buying spree soon lost steam, although the Tokyo market maintained strength throughout the day on the back of a pause in the yen’s strengthening against the dollar and a rise in Shanghai stocks, traders said.
“The market turned static due to a dearth of major trading incentives other than the positive news on the U.S.-China trade front,” said Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co.
Another securities house official attributed the market’s top-heaviness to continued vigilance among investors against the trade conflict between the world’s two largest economies.
“The market is getting used to Trump’s carrot-and-stick approach,” the official said, adding that he may exhibit a hard-line attitude toward China after stock prices recover.
Rising issues outnumbered falling ones 1,480 to 556 in the TSE’s first section, while 114 issues were unchanged.
Volume fell to 1.042 billion shares from Monday’s 1.140 billion shares.
Export-oriented issues attracted buybacks as the yen stopped beating down the dollar, with automaker Toyota Motor Corp. and technology giant Sony Corp. among major gainers.
Technology investor SoftBank Group Corp. snapped its five-day losing streak. Clothing store chain Fast Retailing Co. and mobile phone carrier KDDI Corp. also attracted purchases to push up the Nikkei average along with Softbank Group.
By contrast, job placement service firm Recruit Holdings Co. met with selling after a group firm was punished for selling controversial data on job-hunting students to client companies in violation of a law regarding private information protection.
Also on the negative side were cyber-mall operator Rakuten Inc. and beverage maker Asahi Group Holdings.
In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average rose 120 points to end at 20,420.