Business / Financial Markets | TSE DATA & REPORT

Buybacks boost Tokyo stocks following three-day losing streak

JIJI

Tokyo stocks bounced back Friday thanks to repurchases that emerged in the wake of their three-day losing streak.

The 225-issue Nikkei average rose 74.30 points, or 0.32 percent, to end at 23,112.88. It plunged 109.99 points Thursday.

The Topix index of all issues listed on the first section of the Tokyo Stock Exchange finished up 1.96 points, or 0.12 percent, at 1,691.34, in a turnaround from a 1.73-point drop the previous day.

Investors enhanced their moves to buy back Tokyo stocks in view of robust Shanghai and Hong Kong shares and a rise in U.S. index futures in off-hours trading, brokers said.

Sentiment was also brightened by media reports that Chinese Vice Premier Liu He, who is also Beijing’s top trade negotiator, invited his U.S. counterparts to Beijing for more talks and that new U.S. tariffs set to take effect on Dec. 15 could be delayed.

But after the morning rally, in which the Nikkei gained over 180 points, the market lost steam due to a dearth of fresh buying incentives, brokers said.

“The buybacks were chiefly made by short-term players,” said Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co.

“The market came under pressure from increased position-squaring activities ahead of the weekend,” he added.

On the TSE’s first section, rising issues outnumbered falling ones 1,079 to 952 while 123 issues were unchanged. Volume shrank to 1.11 billion shares from Thursday’s 1.34 million.

Electronic parts suppliers, including Sony and Murata Manufacturing, attracted purchases after Huawei Technologies Co. Chairman Liang Hua told reporters Thursday that the Chinese information technology giant’s parts procurement from Japanese firms in 2019 would rise 50 percent year on year to ¥1.1 trillion.

Beverage maker Ito En extended its winning streak to a sixth session.

Among other winners were daily goods producer Kao and automaker Toyota.

On the other hand, power utilities and airlines such as Tepco and JAL met with selling.

Suzuki fell after Mizuho Securities Co. revised down its investment rating for the automaker.

Cosmetics maker Shiseido and job information provider Recruit Holdings fared poorly as well.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average rose 80 points to end at 23,130.