Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks continue to rise on buybacks

JIJI

Stocks gained ground Monday thanks to buybacks reflecting improved investor sentiment, pushing the key Nikkei average higher for the fifth straight session.

The Nikkei 225 rose 118.85 points, or 0.56 percent, to end at 21,318.42. On Friday, it gained 113.63 points.

The Topix, which covers all issues listed on the Tokyo Exchange’s first section, was up 14.01 points, or 0.91 percent, at 1,551.11 after adding 2.64 points Friday.

Stocks jumped after showing some sluggishness at the outset, with buybacks taking the upper hand amid investors mantaining their optimism over U.S.-China trade negotiations and other external issues, brokers said.

A continued rise on Wall Street on Friday reflecting unchanged expectations for a further interest rate cut by the U.S. Federal Reserve later this month helped the Tokyo market extend its rally, they said.

Both the Nikkei and Topix stayed in positive territory for the rest of the session despite a dearth of fresh trading incentives.

Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc., noted that on top of the rise in U.S. equities, a halt in the yen’s appreciation against the dollar gave a boost to Japanese stocks.

“The market would stay firm this week unless no negative surprises come from the U.S.-China trade front,” he said, pointing out that Japanese shares have been undervalued due to the yen’s strengthening.

But another brokerage firm official warned that investors may move to take profits after the Nikkei’s five-session rally.

Rising issues outnumbered falling ones 1,696 to 368 on the first section, while 87 issues were unchanged.

Volume fell to 964 million shares from 1.148 billion Friday.

All 33 subsector price indexes rose.

Oil names attracted purchases, with JXTG rising 2.22 percent and Cosmo Energy 2.06 percent.

Vehicle accessory retailer Autobacs Seven was buoyant thanks to a rise in same-store sales for August.

Among other winners were industrial robot producer Fanuc and technology giant Sony.

Meanwhile, clothing store chain Fast Retailing snapped its four-session winning streak.

Also on the negative side were technology investor SoftBank Group and cosmetics maker Shiseido.

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