• Jiji


The benchmark Nikkei stock average staged a sharp rebound to snap its six-session losing streak Monday, boosted by broad-based buybacks.

The Nikkei average of 225 selected issues listed on the first section of the Tokyo Stock Exchange soared 485.38 points, or 2.24 percent, to end at 22,195.38. On Friday, the key market gauge tumbled 629.23 points.

The Topix index of all first-section issues surged 26.58 points, or 1.78 percent, to 1,522.64, after sagging 43.41 points the previous trading day to mark a loss for the fourth straight session.

Buying took the upper hand from the outset following a Wall Street rebound Friday led by stocks of Apple Inc., Amazon.com Inc. and other technology firms that announced robust earnings.

A wide range of issues attracted buybacks after the benchmark Nikkei gave up more than 1,100 points in the past six sessions, brokers said.

The yen’s drop against the dollar and a better-than-expected reading of China’s Caixin manufacturing industry purchasing managers’ index for July helped lift the market further, they noted.

Investors renewed buying sentiment after seeing “stocks fall too much” from coronavirus fears on Friday, said Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co.

Otsuka forecast that the market is expected to regain calm later this week, saying players would concentrate on buying and selling in view of earnings reports to be released by major Japanese companies, including Sony.

On the TSE’s first section, gainers trounced losers 1,736 to 398 while 38 issues were unchanged. Volume shrank to 1.322 billion shares from Friday’s 1.678 billion shares.

The weaker yen pushed up automaker Toyota, technology and entertainment giant Sony and other export-oriented stocks.

Electronic parts suppliers, including Nitto Denko and Taiyo Yuden, benefitted from Apple’s surge of over 10 percent.

Among other winners were technology investor SoftBank Group and clothing store chain Fast Retailing.

By contrast, electronic firm NEC, factory automation equipment maker Keyence and electronic device producer Casio were sold on their poor earnings.

Retail giant Seven & i Holdings bled on its plan to spend 21 billion dollars to acquire major U.S. convenience store chain Speedway.

Also shunned were semiconductor testing device maker Advantest and drugmaker Shionogi.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average rose 330 points to end at 22,090.

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