Business / Financial Markets

Tokyo stocks rebound on U.S. rally

Jiji

Tokyo stocks snapped their three-day losing streak Friday, with investors taking heart from a sharp Wall Street rebound and strong Chinese data.

The Nikkei average of 225 selected issues on the first section of the Tokyo Stock Exchange rose 122.69 points, or 0.62 percent, to end at 20,037.47, in a turnaround from a 352.27-point plunge on Thursday.

The TOPIX index of all first-section issues advanced 7.22 points, or 0.50 percent, to 1,453.77, after tumbling 28.14 points the previous day.

Stocks spurted right after the opening bell, enjoying robust buying spurred by the U.S. Dow Jones industrial average’s powerful rally on Thursday.

Sentiment was also brightened by the Japanese government’s lifting of the state of emergency over the coronavirus pandemic in 39 of the country’s 47 prefectures and its launch of work to compile a second supplementary budget for the current fiscal year, brokers said.

After the initial jump, the market lost steam and sank into negative territory toward noon, as concerns over a U.S.-China conflict regarding the responsibility for the pandemic quickly grew in response to U.S. President Donald Trump’s remarks in a media interview Thursday indicating his frustration with the way Beijing has dealt with the novel coronavirus.

In the afternoon, however, stocks turned buoyant thanks to China’s announcement of a surprising rise in its industrial production in April, brokers added.

“U.S. index futures’ upturn in off-hours trading also contributed to the afternoon rally,” said Yutaka Miura, senior technical analyst at Mizuho Securities Co.

A midsize securities firm official pointed out that speculation about the Bank of Japan’s purchase of exchange-traded funds helped the market end higher after the three-day fall.

On the first section, rising issues outnumbered falling ones 1,411 to 704 while 56 issues were unchanged. Volume dropped to 1.29 billion shares from Thursday’s 1.32 billion shares.

Automaker Toyota, technology and entertainment giant Sony and other export-oriented stocks attracted purchases on the back of the yen’s weakening against the dollar.

Oil names including JXTG and Idemitsu benefited from higher crude oil prices.

Chipmaking gear manufacturer Tokyo Electron, test device maker Advantest and other issues in the semiconductor sector ascended on business recovery hopes.

Technology investor SoftBank Group and air conditioner maker Daikin were in the green as well.

Meanwhile, Mitsubishi Estate plunged after releasing a lower-than-expected operating profit projection for the current business year through March 2021.

Major contractor Obayashi extended its losing streak to a fifth session.

Also on the negative side were clothing store chain Fast Retailing and drug maker Takeda.

In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average jumped 260 points to end at 20,040.

Coronavirus banner