• Jiji

  • SHARE

Tokyo stocks bounced back Wednesday, reacting to a broad-based rise on Wall Street and the yen's weakening against the dollar.

The 225-issue Nikkei average advanced 109.08 points, or 0.47 percent, to end at 23,247.15, after shedding 1.69 points Tuesday.

The Topix index of all first-section issues on the Tokyo Stock Exchange rose 7.59 points, or 0.47 percent, to 1,623.40, in a turnaround from a loss of 2.37 points the previous day.

The market opened higher, after wide-ranging U.S. stocks went up Tuesday to help the Dow Jones Industrial Average take an upturn and the tech-heavy Nasdaq composite index rewrite its closing high for the third straight day, brokers said.

The yen's drop against the dollar was also attributed to the initial spurt.

But active buying proved short-lived amid a dearth of fresh incentives, although the market maintained strength throughout the session.

Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co., offered the view that stocks' top-heaviness reflected lingering political uncertainties after Prime Minister Shinzo Abe's abrupt announcement of his plan to resign.

Chief Cabinet Secretary Yoshihide Suga, Abe's right-hand man, seems to have made it certain that he will succeed Abe and maintain Abenomics policies. "Still, investors cannot trade actively until the LDP election" on Sept. 14 to pick the party's new chief, who will be the next prime minister, Otsuka said.

"Many participants have shown a tendency to sell stocks even with minor gains to lock in profits amid the prolonged coronavirus crisis," said an official at a bank-affiliated securities firm.

On the first section, rising issues outnumbered falling ones 1,228 to 846, with 97 issues unchanged. Volume fell to 976 million shares from Tuesday's 1.027 billion shares.

Chipmaking gear manufacturer Tokyo Electron, test device-maker Advantest and other issues in the semiconductor sector rose in tandem with their U.S. peers.

Names linked to Apple Inc. scaled following media reports that the U.S. technology mammoth is considering producing 75 million 5G iPhones. They included electronic parts suppliers Murata Manufacturing and Taiyo Yuden.

Industrial robot producer Fanuc and technology investor SoftBank Group were upbeat as well.

By contrast, department store operators including Isetan Mitsukoshi and Takashimaya met with selling due to their bleak sales in August.

Drugmaker Takeda extended its losing streak to a sixth session.

Also shunned were mobile phone carrier KDDI and automaker Honda.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average gained 140 points to end at 23,300.

Coronavirus banner