Tokyo stocks turned sharply higher Tuesday, lifted by buybacks of a wide range of issues spurred by vigorous performances of technology issues.
The Nikkei 225 average jumped 595.41 points, or 3.13 percent, to end at 19,638.81 after plunging 455.10 points Monday.
The Topix, which covers all issues on the first section of the Tokyo Stock Exchange, surged 27.60 points, or 1.96 percent, to 1,433.51. It fell 24.13 points Monday.
The market got off to a good start with active purchases of electronics and other technology-oriented issues.
Investors took heart from a rise Monday in the tech-heavy Nasdaq composite index in the United States despite a drop in the Dow Jones Industrial Average of conventional blue chips, brokers said.
Buying spread across the board later, thanks to advances in U.S. index futures in off-hours trading following U.S. President Donald Trump’s comments expressing his eagerness to decide on easing social distancing guidelines to reopen the economy within days.
Besides technologies, retailers of goods to meet “nesting” demand from people working from home attracted particularly strong purchases, brokers said.
Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc., noted interest in stocks believed to keep faring well under the state of emergency over the coronavirus outbreak, such as game makers and telework-related service providers.
Looking ahead, Fujii pointed out that although a number of firms are expected to announce dismal earning reports amid the virus crisis, such announcements may prompt stock purchases, as in the cases of technology investor SoftBank Group and industrial robot producer Yaskawa Electric.
“Chances cannot be ruled out that investors will think the worst is over,” he said.
Another market sources said the Nikkei rose faster than the Topix because of jumps in its heavily weighted component stocks, such as clothing store chain Fast Retailing, SoftBank Group and chipmaking gear manufacturer Tokyo Electron. Those three alone pushed the Nikkei higher by over 150 points.
On the first section, winners outnumbered losers 1,649 to 465 while 55 issues were unchanged. Volume increased to 1.306 billion shares from 1.056 billion Monday.
Tokyo Electron, test device maker Advantest and wafer producer Shin-Etsu Chemical soared along with other issues in the semiconductor sector.
Major convenience store operator FamilyMart surged after its earnings estimates for the year to February 2021 beat market consensuses.
Among other winners were industrial robot producer Fanuc and optical equipment maker Olympus
Meanwhile, general contractor Shimizu met with selling following its recent announcement that one of its three workers who had tested positive for the coronavirus died.
Also on the negative side were camera maker Canon and department store operator Takashimaya.