Business / Financial Markets

Tokyo stocks rebound, shrugging off selling on U.S. official's remarks

Jiji

Tokyo stocks bounced back Tuesday following a Wall Street rally, despite negative remarks reported by a White House official on U.S.-China trade.

The 225-issue Nikkei average advanced 111.78 points, or 0.50 percent, to end at 22,549.05. On Monday, the key market gauge lost 41.52 points.

The Topix index of all first-section issues on the Tokyo Stock Exchange closed up 8.05 points, or 0.51 percent, at 1,587.14, after falling 3.71 points the previous day.

Reassured by U.S. stocks' advance on Monday, in which the Dow Jones industrial average staged a sound rebound and the tech-heavy Nasdaq composite index rewrote its closing high, investors actively placed buy orders from the outset.

The market quickly lost steam in midmorning trading, after White House trade adviser Peter Navarro said in an interview with Fox News that the U.S.-China deal is "over."

But Navarro's subsequent statement that his comment was taken "wildly out of context" and U.S. President Donald Trump's Twitter post saying the "deal is fully intact" prompted buybacks and pushed the market back into positive terrain, brokers said.

In the afternoon, stocks repeated minor fluctuations amid a dearth of fresh trading incentives.

"The day's rebound can also be attributable to investors taking heart from progress in business reopening in the United States and Trump's fresh cash handout plan," said Yoshihiko Tabei, chief analyst at Naito Securities Co.

On the TSE's first section, rising issues far outnumbered falling ones 1,358 to 706, while 103 issues were unchanged. Volume increased to 1.192 billion shares from Monday's 936 million shares.

"The day's rebound can also be attributable to investors taking heart from progress in business reopening in the United States and Trump's fresh cash handout plan," said Yoshihiko Tabei, chief analyst at Naito Securities Co.

In New York on Monday, many businesses, including in-store retail, restarted operations in the second phase of reopening after closing for months due to the coronavirus pandemic.

Tokyo Electron, Advantest and other stocks in the semiconductor sector were in the green thanks to robust performances of their U.S. peers Monday.

Oriental Land surged 3.24 percent after announcing Tokyo Disney parks' reopening on July 1.

State-backed research institute Riken's announcement that Fugaku was ranked the fastest supercomputer in the world buoyed Fujitsu, one of its developers, by 2.77 percent.

Among other major winners were auto parts supplier Denso and soy sauce producer Kikkoman.

On the other hand, drug store chain Tsuruha Holdings fell 2.76 percent due to its failure to beat a market consensus for operating profit for the year that ended in May.

Also on the negative side were parcel delivery firm Yamato Holdings and retail group Seven & I Holdings.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average gained 240 points to end at 22,560.

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