Tokyo stocks jumped Thursday following a sharp rebound in the U.S. market despite unabated fears over the global coronavirus outbreak.
The 225-issue Nikkei average soared 229.06 points, or 1.09 percent, to end at 21,329.12, after scoring a modest rise of 17.33 points Wednesday.
The Topix index of all TSE first-section issues finished 13.21 points, or 0.88 percent, higher at 1,515.71, in a turnaround from a drop of 2.62 points the previous day.
Tokyo stocks shot up right after the opening bell, as pre-opening buy orders had piled up in the wake of a Wall Street rally Wednesday in which the Dow Jones industrial average closed with the second largest point gain ever and the other two major price gauges — the Nasdaq composite and S&P 500 indexes—scaled about 4 percent.
Investors in U.S. stocks applauded Democratic presidential candidate Joe Biden’s lead in the crucial Super Tuesday nomination battle against radical contender Bernie Sanders, brokers said.
The better-than-expected U.S. nonmanufacturing index for February, released by the U.S. Institute for Supply Management, also brightened sentiment, they added.
The Tokyo market lost steam around the midmorning amid the ongoing coronavirus outbreak, although it resisted falling much for the rest of the session aided by powerful rallies in the Chinese markets.
Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., said the day’s “thin trading indicates that Tokyo stocks are not ready for a full-fledged rally.”
California Governor Gavin Newsom’s declaration of a state of emergency Wednesday prevented investors from lowering their guard against the coronavirus, Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co., noted.
On the TSE first section, rising issues outnumbered falling ones 1,115 to 943 while 105 issues were unchanged. Volume fell to 1.383 billion shares from Wednesday’s 1.507 billion shares.
Trading house Mitsui & Co. and mobile game site operator Gree Inc. attracted buying after announcing their respective plans to buy back own shares.
Takeda Pharmaceutical Co. rocketed 3.51 percent as investors cheered its planned development of a coronavirus treatment.
Online fashion retailer Zozo Inc. surged 3.02 percent, thanks to the company’s opening of a dedicated shopping website for shoes.
Other major winners included Tokyo Electric Power Company Holding Inc. and lactic beverage maker Yakult Honsha Co.
On the other hand, beverage producer DyDo Group Holdings Inc. tumbled 4.06 percent, after the company issued a profit warning for the current business year through January 2021.
In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average rose 240 points to end at 21,370.
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