• Jiji


Tokyo stocks soared Monday to extend their winning streak to a fourth session in a row, riding energy from the robust Shanghai and Hong Kong markets amid hopes for further market support by the Chinese government.

The Nikkei average of 225 selected issues listed on the first section of the Tokyo Stock Exchange rocketed 407.96 points, or 1.83 percent, to end at 22,714.44, after climbing 160.52 points Friday.

The Topix index of all first-section issues jumped 24.82 points, or 1.60 percent, to 1,577.15, following a 9.57-point rise the previous trading day.

Opening modestly higher in thin trading, the Tokyo market picked up steam thanks to a rise in U.S. index futures in off-hours trading, brokers said.

Buying sentiment grew stronger in the afternoon, as Shanghai and Hong Kong stocks substantially stretched their gains on an article in a Chinese government-affiliated newspaper suggesting the possibility of further public support for equities, they said.

“I was puzzled to see Tokyo stocks rise so sharply without powerful incentives,” said Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co.

“Probably behind the rally was activated short-covering moves in the futures market,” he added.

An official at a bank-affiliated brokerage house pointed out that stocks jumped even on small-lot buy orders in thin trading, caused by the three-day weekend in the United States beginning Friday.

“Short-term speculative transactions are expected to sway the market for the time being,” with institutional investors holding active moves in check in view of sharply increasing coronavirus cases, another brokerage firm official said.

On the TSE’s first section, rising issues far outnumbered falling ones 1,888 to 244 while 38 issues were unchanged. Volume increased to 1.025 billion shares from Friday’s 982 million shares.

Shipping firms Mitsui O.S.K. Lines, Nippon Yusen and Kawasaki Kisen attracted purchases on a rise in the Baltic Dry Index for shipping costs.

Chip-making gear manufacturer Tokyo Electron, test device maker Advantest and other issues in the semiconductor sector were pushed up by hopes for a demand increase.

Mitsubishi Electric advanced after the Tokai Tokyo Research Institute revised its investment rating and target price upward for the electronics maker.

Technology investor SoftBank Group and clothing store chain Fast Retailing also went up.

Meanwhile, drugmaker Shionogi and factory automation equipment maker Keyence were among a handful of losers.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average rose 370 points to end at 22,650.

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