Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks rise for third session on Wall Street climb

JIJI

Tokyo stocks rose Monday for the third consecutive session thanks to a climb on Wall Street late last week.

The Nikkei 225 average advanced 76.30 points, or 0.33 percent, to end at 23,430.70 after rising 54.31 points Friday.

The Topix, which covers all first-section issues on the Tokyo Stock Exchange, finished 8.71 points, or 0.51 percent, higher at 1,722.07 following a 1.95-point gain Monday.

The market opened higher, with investor sentiment brightened by rises in three key U.S. market gauges Friday on the back of better than expected U.S. nonfarm payroll data, brokers said.

Pressured by a slight strengthening of the yen against the dollar and profit-taking, the market then failed to extend gains.

While fluctuating within a narrow range due to a dearth of new trading incentives, both indexes remained in positive territory for the rest of the day.

Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., said that trading was thin throughout the day as there were only a small number of foreign participants at the start of the week.

On the market’s sluggish trading in the afternoon, Ota said “investors were sitting on the sidelines ahead of” the planned implementation of additional tariffs on Chinese goods by the United States on Sunday.

Noting that the employment data were the only U.S. economic indicator that recently exceeded the market’s consensus, Yutaka Miura, senior technical analyst at Mizuho Securities Co., said the topside of the market was weighed down by “a sense of caution that the U.S. market will fall later on Monday” due to lingering concerns over a slowdown of the U.S. economy.

Rising issues far outnumbered falling ones 1,423 to 624 in the first section, while 109 issues were unchanged.

Volume edged up to 1.085 billion shares from 1.054 billion Friday.

Oil names, including Inpex and Idemitsu, attracted buying, reflecting a rise in New York crude oil futures Friday.

Defense-related issues also rose due to concerns over heightened geopolitical risks in East Asia, after North Korea claimed Sunday that it has conducted a very important test at a missile launch site. Of such issues, Ishikawa Seisakusho jumped 10.69 percent and Howa Machinery 6.52 percent.

Among other major winners were daily goods producer Kao and yakitori chicken barbecue pub chain Torikizoku.

On the other hand, drugmakers Daiichi Sankyo and Sumitomo Dainippon Pharma met with selling.

Realtor Mitsui Fudosan and semiconductor test device maker Advantest also went down.

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