Tokyo stocks rose moderately in thin trading Wednesday, with investors coming to buy the dip amid a dearth of fresh market-moving news.
The 225-issue Nikkei average gained 59.53 points, or 0.26 percent, to end at 23,110.61, in a turnaround from a 45.67-point drop Tuesday.
The Topix index of all first-section issues on the Tokyo Stock Exchange closed up 2.88 points, or 0.18 percent, at 1,613.73, after rising 1.03 points the previous day.
The market got off to a weak start in the wake of the U.S. Dow Jones industrial average’s downturn and the yen’s rise against the dollar, but it turned buoyant later in the morning as investor appetite for stocks seen trading at a discount increased and the yen stopped strengthening, brokers said.
In the afternoon, both the Nikkei and Topix indexes hovered moderately above their previous day’s closing levels with few fresh trading incentives in sight.
Domestic demand-led issues were bought back, but there were no powerful trade-stimulating events, a major brokerage house official said.
Maki Sawada, vice president of Nomura Securities Co.’s Investment Research & Investor Services Department, pointed out that Japan’s “weaker-than-expected core machinery orders in June weighed on the market.”
The Cabinet Office said before the opening bell that seasonally adjusted private-sector machinery orders, excluding orders for ships and from power suppliers, dropped 7.6 percent from the previous month.
With foreign investors still taking summer holidays, trading lacked core players and was thus uneventful, an official at a bank-affiliated securities firm noted.
On the first section, rising issues slightly outnumbered falling ones 1,115 to 954, with 104 issues unchanged. Volume shrank to 915 million shares from Tuesday’s 974 million shares.
Railway group Seibu Holdings drew buying for its deal to build a Harry Potter park after closing down its Toshimaen amusement park in Tokyo’s Toshima Ward on Aug. 31.
Realtor Mitsui Fudosan and system integration service provider NTT Data were also among major gainers.
Meanwhile, chipmaking gear-maker Tokyo Electron and other stocks in the semiconductor sector were hurt by the SOX Philadelphia semiconductor index’s drop.
Automaker Suzuki and technology firm Fujifilm Holdings went down as well.
In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average rose 70 points to end at 23,130.