Tokyo stocks advanced for the fifth consecutive day on Friday, with economic recovery prospects keeping investor sentiment bullish.
The Nikkei average of 225 selected issues listed on the first section of the Tokyo Stock Exchange went up 167.99 points, or 0.74 percent, to end at 22,863.73, after rising 81.98 points Thursday.
The Topix index of all TSE first-section issues closed up 8.66 points, or 0.54 percent, at 1,612.48, following a 4.74-point gain the previous day.
Stocks were hit by waves of selling from the outset to lock in profits amid caution over high prices spreading from recent sharp rises, with the Nikkei giving up more than 130 points right after the opening bell, brokers said.
But the market turned buoyant in the afternoon, as bargain-hunting gathered steam, they said, adding that foreign investors were particularly active buyers.
The European Central Bank’s decision Thursday to increase its emergency monetary stimulus to recover from the coronavirus crisis fueled expectations that the global economy was bottoming out, other sources said.
“A rise in Dow Jones futures (in off-hours trading) contributed to the afternoon rally,” said Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co.
He also noted that the Tokyo market’s advance for the whole week was brought on by “excessive liquidity” provided by the world’s central banks and “expectations for fiscal stimuli” to shield economic activities from the fallout from the pandemic.
On the TSE’s first section, rising issues outnumbered falling ones 1,154 to 943 while 72 issues were unchanged. Volume fell to 1.392 billion shares from Thursday’s 1.516 billion shares.
Mega-bank Mitsubishi UFJ, insurer Dai-ichi Life and other financials capitalized on their U.S. peers’ gains on Thursday.
Airlines JAL and ANA were lifted by media reports that the government is considering easing travel restrictions for businesspeople.
Among other winners were industrial robot producer Fanuc and technology investor SoftBank Group.
Meanwhile, job information provider Recruit Holdings bled on a group firm’s decision to refrain from holding events to help new graduates meet with recruiters, until the end of July.
Also sold were cosmetics giant Shiseido and mobile phone carrier KDDI
In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average rose 110 points to end at 22,870.