The benchmark Nikkei average managed to rise for the second market day Wednesday, although overall sentiment was dampened by a Wall Street downturn.
The 225-issue Nikkei average of the Tokyo Stock Exchange closed 24.95 points, or 0.11%, higher at 23,626.73, after gaining 43.09 points Tuesday.
Meanwhile, the Topix index of all TSE first section issues gave up 5.20 points, or 0.32%, to end at 1,643.90, following a 5.75-point climb the previous day.
The market opened lower and remained under selling pressure in the morning, in the wake of Wall Street snapping its four-session winning streak Tuesday on media reports about halts in coronavirus vaccine and antibody clinical trials in the United States.
But the Nikkei came back into positive terrain in early afternoon trading thanks to purchases of the benchmark index’s high-priced component stocks, while the broader Topix failed to turn buoyant throughout the Wednesday session, brokers said.
Masayuki Otani, chief market analyst at Securities Japan Inc., pointed out that the Nikkei failed to post a major rebound as its cyclical components met with selling.
While facing selling stemming from U.S. stocks’ weakness, the market was underpinned by the bullishness of shares “linked to Prime Minister Yoshihide Suga’s policies,” Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., said.
On the TSE’s first section, decliners outnumbered gainers 1355 to 735 with 86 issues unchanged. Volume increased to 967 million shares from Tuesday’s 870 million shares.
Among the vigorous Nikkei components, chipmaking gear manufacturer Tokyo Electron and technology investor SoftBank Group Corp. soared 2.56% and 1.52%, respectively.
Digital security firm GMO GlobalSign Holdings K.K. attracted popularity as it was implicated in the Suga administration’s campaign to remove hanko seals from administrative work.
Outdoor gear retailer Snow Peak Inc. jumped 9.85% thanks to a sales surge in September on heightened demand for camping equipment amid the coronavirus pandemic.
Banking groups, such as Mizuho Financial Group Inc. and Resona Holdings Inc., fell in tandem with their U.S. peers in reaction to JPMorgan Chase’s bleak earnings outlook.
Other losers included engineering company JGC Holdings Corp. and copier-maker Konica Minolta Inc.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average ended flat at 23,590.