Tokyo stocks extended their winning streak to a fourth session Thursday, thanks to a continued Wall Street rally powered by hopes for an economic recovery.
The Nikkei average of 225 selected issues on the first section of the Tokyo Stock Exchange climbed 497.08 points, or 2.32 percent, to end at 21,916.31, following a 148.06-point rise on Wednesday.
The Topix index of all first-section issues soared 27.87 points, or 1.80 percent, to 1,577.34, after adding 14.74 points the previous day.
Investors hunted a wide range of stocks from the outset, taking heart from the U.S. Dow Jones industrial average gaining 2.2 percent to close above 25,000 for the first time in some 10 weeks on Wednesday.
Sentiment was brightened by moves in the world to awaken economic activities from their torpor induced by the novel coronavirus, including Walt Disney Co.’s announcement of phased reopenings for its theme parks from July, brokers said.
A rise in Dow futures in off-hours trading helped the Tokyo market extend gains by shrugging off selling to lock in profits in the current rally, in which the Nikkei scaled over 1,000 points in the past three sessions.
Meanwhile, concerns over an escalation of U.S.-China tensions grew ahead of China’s expected adoption later on Thursday of national security legislation to tighten control of Hong Kong, brokers pointed out.
Maki Sawada, vice president of Nomura Securities Co.’s Investment Research & Investor Services Department, noted that the investors also welcomed the European Commission’s proposal of a €750 billion recovery fund.
“In addition, the market was buoyed by renewed expectations for a coronavirus vaccine to be developed early,” she said, citing optimistic remarks made Wednesday by Anthony Fauci, head of the U.S. National Institute of Allergy and Infectious Diseases.
On the TSE’s first section, winners trounced losers 1,530 to 583 while 53 issues were unchanged. Volume swelled to 2.087 billion shares from Wednesday’s 1.763 billion shares.
The U.S. economy’s opening lifted export-oriented issues, including automaker Toyota and technology and entertainment firm Sony.
Advertising giant Dentsu Group surged 16.41 percent after posting larger-than-expected operating profit for January-March this year.
Job information provider Recruit Holdings and mobile phone carrier KDDI were also among major gainers.
On the other hand, notable losers included technology firm DeNA and engineering company JGC.
In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average rocketed 540 points to end 22,030.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.