The Nikkei bounced back Friday on the Tokyo Stock Exchange (TSE) supported by buybacks and the popularity of technology issues.
The benchmark 225-issue Nikkei average listed on the exchange’s first section advanced 123.33 points, or 0.55 percent, to end at 22,478.79. On Thursday, the key market gauge had lost 100.30 points.
Meanwhile, the Topix index of all TSE first-section issues inched down 0.29 point, or 0.02 percent, at 1,582.80, after falling 4.00 points the previous day.
The Tokyo market started off on the sunny side, thanks to buybacks following the market’s recent drops.
The Nikkei continued to fluctuate tightly in positive territory, reflecting rises in semiconductor-related and other technology issues, especially chipmaking gear manufacturer Tokyo Electron — a heavyweight component of the benchmark average.
A rebound of U.S. Dow Jones industrial average futures in off-hours trading also supported the Nikkei.
Meanwhile, the overall Tokyo market’s upside was capped by lingering fears over another wave of novel coronavirus infections, causing the Topix to move on a comparatively weak note to end slightly below Thursday’s closing level.
“Around half of the Nikkei’s rise was due to Tokyo Electron,” which announced better-than-expected operating profit outlook for the year until March 2021, said Maki Sawada, vice president of Nomura Securities Co.’s Investment Research & Investor Services Department.
Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc., noted that “The Tokyo market throughout the day was supported by hopes for a recovery in the Japanese economy.”
Market participants “were relieved to see that Japan fully removed its request for voluntary restrictions on traveling across prefectural borders,” Fujii added.
Rising issues slightly outnumbered falling ones 1,043 to 1,033 in the TSE’s first section, while 90 issues were unchanged. Volume increased to 1.5 billion shares from Thursday’s 1.1 billion shares.
Tokyo Electron surged 7.13 percent, and the company’s rosy earnings outlook also prompted active buying of many other semiconductor and technology issues, including Advantest.
Nishimatsuya Chain, a seller of clothing for children, rocketed 15.38 percent, reflecting its hefty operating profit for the March to May period this year.
Among other winners were technology investor SoftBank Group and drugmaker Shionogi.
On the other hand, Mazda fell 2.88 percent, due to SBI Securities Co. revising down its target stock price for the automaker.
Also on the negative side were job information service firm Recruit Holdings and daily goods maker Kao.
In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average advanced 310 points to end at 22,510.