Tokyo stocks extended gains Tuesday, thanks to the renewed popularity of technology-oriented issues.
The 225-issue Nikkei average of the Tokyo Stock Exchange advanced 166.74 points, or 0.73 percent, to end at 22,884.22, after gaining 21.06 points Monday.
The Topix index of all TSE first section issues closed up 5.71 points, or 0.36 percent, at 1,582.74, following a 3.18-point rise the previous day.
The Tokyo market spurted in the early morning, led by hefty purchases of technology issues.
Investors took heart from the tech-heavy Nasdaq composite index rewriting its all-time closing high for the first time in six U.S. market days Monday, brokers said, adding that the SOX Philadelphia semiconductor index’s sharp advance also boosted tech appetite.
Although active buying did not last long, purchases induced by bullishness of some Chinese and other Asian stocks underpinned the market for the rest of the Tuesday session.
“As did their U.S. peers the previous day, stocks in the electronic parts and semiconductor sectors buoyed the entire market,” said Maki Sawada, vice president of Nomura Securities Co.’s Investment Research & Investor Services Department.
But she also noted that participants, taken as a whole, were sitting on the fence to wait for Nidec’s announcement later Tuesday of the electric device-maker’s April-June earnings.
Pointing to the absence of strong trading incentives, Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co., said the day’s market advance seemed “a little strange.”
On the TSE’s first section, rising issues outnumbered falling ones 1,402 to 676 while 94 issues were unchanged. Volume rose to 1.151 billion shares from Monday’s 918 million shares.
Among the flourishing technology names were chipmaking gear manufacturers Screen Holdings Co. and Tokyo Electron.
SoftBank Group Corp., which invests in cutting-edge technologies, was also in the green.
M3 Inc. jumped 4.13 percent, after Mitsubishi UFJ Morgan Stanley Securities Co. revised up its target stock price for the medical information services provider.
Drugmaker Shionogi & Co. rose 2.84 percent, in response to news reports that the company will triple the production capacity for its planned coronavirus vaccine by the end of 2021.
On the other hand, trading house Sumitomo Corp. dived 2.28 percent on its ¥55 billion impairment loss estimate for April-June.
In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average rose 190 points to end at 22,840.