Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks rebound due to buying on dips

JIJI

Tokyo stocks rebounded in sluggish trading on Thursday, on the back of buying on dips and a slight weakening of the yen against the dollar.

The Nikkei average of 225 selected issues on the Tokyo Stock Exchange climbed 142.05 points, or 0.60 percent, to end at 23,924.92, after falling 47.71 points Wednesday.

The Topix index of all first-section issues closed up 9.78 points, or 0.57 percent, at 1,731.20, rising for the first time in seven sessions. It dropped 6.80 points the previous day.

Both indexes spurted from the outset, thanks to buying on dips, a weaker yen and a rise in Nikkei futures prices, brokers said.

Amid a lack of fresh trading incentives, the market soon lost steam and the indexes moved in a narrow range in the afternoon.

Throughout the day, the underside of the Tokyo market was supported by firm Shanghai stocks, brokers said.

“Trading was thin, with most foreign investors absent from the Tokyo market due to the Christmas holidays,” Yoshihiko Tabei, chief analyst at Naito Securities Co., said.

“The underside of Tokyo stocks was also buoyed by expectations that the Dow Jones industrial average will climb later on Thursday, in view of a rise of the Dow futures in off-hours trading,” Yutaka Miura, senior technical analyst at Mizuho Securities Co., said.

Rising issues far outnumbered falling ones 1,657 to 412 in the TSE first section, while 92 issues were unchanged.

Volume rose to 821 million shares from Wednesday’s 776 million shares.

Zojirushi jumped 7.97 percent, after the maker of cooking appliances said that it expects to post an operating profit increase for the business year until November next year.

Curry house Ichibanya rose 3.70 percent in response to an upward revision to its business outlook for the year until February 2020.

Among other major winners were tobacco giant JT and heavy machinery-maker IHI.

On the other hand, cybermall operator Rakuten dropped for the third consecutive session.

In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average advanced 120 points to end at 23,830.