Tokyo stocks advanced for the third straight session Wednesday amid growing hopes for the economy’s recovery from the ongoing slump brought on by the global coronavirus pandemic.
The 225-issue Nikkei average climbed 148.06 points, or 0.70 percent, to end at 21,419.23, following a 529.52-point surge Tuesday.
The Topix index of all first-section issues on the Tokyo Stock Exchange closed 14.74 points, or 0.96 percent, higher at 1,549.47, after jumping 32.53 points the previous day.
Stocks in the morning met with selling to lock in profits, but at the same time they attracted buying by investors welcoming the resumption of domestic business activities in the wake of the government’s full lifting of the coronavirus emergency Monday, brokers said.
The market headed north in the afternoon, with sentiment brightened by media reports that the government’s second fiscal 2020 supplementary budget plan calls for ¥31.9 trillion in general account spending to help the country overcome the virus crisis, brokers said.
“Besides, market players were relieved to see index futures on the Dow Jones industrial average go up in off-hours trading,” after the major U.S. market yardstick staged a sharp rise Tuesday, Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc., said. The U.S. market was closed Monday for Memorial Day.
Fujii also noted that the market was weighed down by concerns over U.S.-China tensions, which were heightened by news reports that the White House is considering sanctions against China over Beijing-proposed national security legislation to tighten its control over Hong Kong.
On the TSE first section, rising issues outnumbered falling ones 1,431 to 662, while 77 issues were unchanged. Volume grew to 1.763 billion shares from Tuesday’s 1.472 billion shares.
Oil issues, including JXTG and Cosmo, benefited from higher crude oil prices.
Automaker Isuzu jumped 7.08 percent after its operating profit for the year that ended in March beat a market consensus.
Among the other major winners were Astellas Pharma and industrial robot producer Fanuc.
On the other hand, airlines JAL and ANA fell prey to profit-taking along with railways JR East and JR Tokai.
Sumitomo Realty & Development and soy sauce producer Kikkoman were also sold.
In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average gained 210 points to end at 21,490.