Tokyo stocks gained further ground Monday, getting a boost from rises in overseas markets.
The 225-issue Nikkei average of the Tokyo Stock Exchange advanced 152.81 points, or 0.65 pct, to end at 23,559.30, after the key market gauge gained 171.02 points Friday.
The Topix index of all first section issues closed up 14.46 points, or 0.88 percent, at 1,651.10, adding to gains following an 11.78-point rise the previous trading day.
Stocks got off to a stronger start, with investors taking heart from the U.S. Dow Jones Industrial Average’s rebound Friday thanks in part to an upbeat earnings report by Oracle Corp. for June-August, brokers said.
The market stayed buoyant throughout Monday’s trading due chiefly to buying induced by climbs in other Asian markets and the Dow futures in off-hours trading, although its topside was heavy amid a dearth of powerful buying incentives, they noted.
Analysts also attributed the Nikkei’s strength to an upsurge in the share price of SoftBank Group Corp., the benchmark index’s major component, triggered by the technology investor’s announcement that it will sell its entire shareholdings in British chip designer Arm Ltd. to U.S. computing firm Nvidia Corp.
“Softbank Group pushed up the Nikkei by around 110 points,” said Maki Sawada, vice president of Nomura Securities Co.’s Investment Research & Investor Services Department.
Meanwhile, the market was little affected by media reports predicting Chief Cabinet Secretary Yoshihide Suga’s victory in the ruling Liberal Democratic Party’s leadership election later on Monday, as it “had already been factored in,” Sawada said.
On the first section, gainers overwhelmed decliners 1,619 to 471 with 83 issues unchanged. Volume fell to 1.176 billion shares from Friday’s 1.297 billion shares.
SoftBank Group surged 8.96 percent.
Cyclicals, including Mitsubishi Chemical Holdings Corp., benefited from their U.S. peers’ rises.
Also in the green were advertising giant Dentsu Group Inc. and beverage-maker Asahi Group Holdings.
On the other hand, cell phone carriers NTT Docomo Inc., KDDI Corp. and SoftBank Corp. fell amid growing expectations that Suga will demand cuts in mobile communications fees after becoming prime minister.
Among other major losers were medical information services provider M3 Inc. and chipmaking gear manufacturer Tokyo Electron.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average gained 220 points to end at 23,420.
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