Tokyo stocks gained further ground, albeit modestly, on Tuesday, as an overnight rebound of U.S. equities pushed up a market otherwise lacking in fresh trading incentives.
The 225-issue Nikkei average of the Tokyo Stock Exchange advanced 121.59 points, or 0.52 percent, to end at 23,433.73. On Monday, the key market gauge finished up 282.24 points.
The Topix index of all TSE first section issues finished 8.50 points, or 0.52 percent, higher at 1,645.75, after climbing 28.03 points the previous day.
The Tokyo market opened higher after Wall Street was boosted Monday by the news of U.S. President Donald Trump’s discharge from the hospital after his novel coronavirus infection.
U.S. equities were also buoyed by a continued rise in expectations for an agreement on a new stimulus package by the U.S. government, as well as better-than-expected U.S. nonmanufacturing-sector employment statistics for September, brokers said.
But the strong start in Tokyo was soon replaced by mixed currents of buy and sell orders, as investors saw a dearth of major trading incentives.
The fact that the Tokyo market was already aware of Trump’s hospital discharge plans contributed to muted market reaction, Masayuki Otani, chief market analyst at Securities Japan Inc., said.
One broker called Tuesday’s market movements “an extension” of those of the day before.
Otani added that, despite the dearth of short-term incentives, “there are expectations for a brighter state of the economy,” pointing to gains of stocks in the materials sector as an indicator of investor confidence.
Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., said that market activity is expected to increase later this week, when some companies are scheduled to release earnings for the quarter that ended in August.
Gainers outnumbered losers 1,152 to 923 in the TSE first section, with 103 issues unchanged. Volume dipped to 989 million shares from Monday’s 1.046 billion shares.
Toshiba Corp. jumped 3.70 percent after a news report that its spinoff chipmaker Kioxia is seeking to reschedule its postponed listing on the TSE as early as December. Toshiba owns an equity stake of about 40 percent in Kioxia.
Oil names such as Cosmo Energy Holdings Co. attracted buying, reflecting higher crude oil prices.
Other major winners included automakers Hino Motors and Honda Motor Co.
By contrast, railway operators and airlines succumbed to selling pressure, as investors locked in profits from the sharp rises the previous day.
Optical equipment-maker Olympus Corp. and air conditioner-maker Daikin Industries also went down.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average gained 120 points from Monday to end at 23,400.
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