Tokyo stocks went further up Monday, with buying gathering steam in the wake of a continued Wall Street rally.
The 225-issue Nikkei average of the Tokyo Stock Exchange jumped 307.00 points, or 1.32 percent, to close at 23,511.62, after gaining 116.80 points Friday.
The Topix index of all TSE first section issues closed up 27.70 points, or 1.69 percent, at 1,661.93, following a 7.79-point advance the previous trading day.
Taking heart from sharp rises in all three major U.S. stock price gauges including the Dow Jones Industrial Average on Friday, investors rushed to buy wide-ranging Tokyo shares at the outset of trading.
After the bout of buying ran its course, however, the market turned top-heavy amid a dearth of fresh trading incentives, although its downside was underpinned by the bullishness of stocks in other parts of Asia.
Both the Nikkei and Topix indexes jumped in the final minutes of the day’s trading to end at session highs, thanks to increased purchases ahead of the ex-dividend date Tuesday, brokers said.
“Sentiment was particularly brightened by the U.S. technology sector staging a rally after suffering a correction,” said Maki Sawada, vice president of Nomura Securities Co.’s Investment Research & Investor Services Department.
But at the same time a media report that the U.S. government placed restrictions on tech exports to China’s biggest chipmaker, Semiconductor Manufacturing International Corp., made investors worry about a further deterioration in U.S.-China relations, she added.
On the TSE first section, gainers overwhelmed decliners 1,892 to 251 with 34 issues flat. Volume increased to 1.462 billion shares from Friday’s 1.274 billion shares.
Such railway operators as Seibu Holdings Inc. attracted buying to secure rights to midterm dividends and shareholder benefit programs.
Furniture retailer Nitori Holdings Co. extended gains thanks to its rosier profit projections for the year through next February.
Among other major winners were medical equipment-maker Terumo Corp. and game-maker Bandai Namco Holdings Inc.
On the other hand, some China-linked tech names, including semiconductor test device-maker Advantest Corp. and chipmaking gear manufacturer Tokyo Electron, were dampened by the growing concerns over U.S.-China ties.
Also downbeat were airline ANA Holdings Inc. and shipping firm Mitsui O.S.K. Lines.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average advanced 260 points to 23,290.