Tokyo stocks leaped ahead Tuesday, propelled by further advances on Wall Street amid the unabated popularity of technology-oriented stocks.
The 225-issue Nikkei average of selected issues listed on the first section of the Tokyo Stock Exchange jumped 378.28 points, or 1.70 percent, to end at 22,573.66 following a 485.38 point rise on Monday.
The Topix index of all first-section issues surged 32.62 points, or 2.14 percent, to finish at 1,555.26 after the broader index gained 26.58 points the previous day.
Investors placed hefty buy orders from the outset, taking a cue from the U.S. technology-heavy Nasdaq composite index rewriting its record closing high Monday thanks to a faster-than-expected rise in the Institute for Supply Management’s manufacturing index for July.
The market lost steam toward noon, but gradually extended gains in the afternoon as Sony and other technology names continued to attract buying, brokers said, adding that there were no big reasons to sell stocks.
Hirohumi Yamamoto, strategist at Toyo Securities Co., observed that “speculative players who massively sold shares on Friday turned to buy them back.”
Other than buybacks, noticeable market activities were selective buying and selling of stocks whose issuer companies released their earnings reports, he noted, adding that no powerful market-moving events were seen.
On the TSE’s first section, gainers overwhelmed losers 1,807 to 316 while 50 issues were unchanged. Volume increased to 1.403 billion shares from Monday’s 1.322 billion shares.
Mobile phone carrier NTT Docomo, soy sauce producer Kikkoman and chemical maker Asahi Kasei were buoyed by strong earnings figures.
Financials including megabank group Mitsubishi UFJ and insurer Tokio marine benefited from higher U.S. long-term interest rates.
Automaker Toyota, technology giant Sony and other export-oriented issues gained ground thanks to the yen’s weakening against the dollar.
Among other stocks in the green were clothing store chain Fast Retailing and job information service provider Recruit Holdings.
On the other hand, price comparison website operator Kakaku.com met with selling after announcing a dismal earnings report.
Technology investor SoftBank Group and electronics firm Fujitsu went down as well.
In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average surged 500 points to end at 22,590.
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