Tokyo stocks rose for the first time in six sessions Monday, thanks to active purchases of shares that were battered in the extended bear-run last week.
The 225-issue Nikkei average of the Tokyo Stock Exchange surged 318.35 points, or 1.39%, to close at 23,295.48. On Friday, the benchmark index plunged 354.81 points.
The Topix index of all TSE first section issues closed up 28.62 points, or 1.81%, at 1,607.95, after plummeting 31.60 points the previous trading day.
Stocks spurted from the outset as investors stepped up buybacks and “buy the dip” activities in the wake of the previous week’s five-day losing streak, in which the Nikkei surrendered more than 535 points.
After the early waves of buying, the market lost steam amid a wait-and-see mood that grew ahead of the U.S. presidential election set for Tuesday. But it stayed in positive terrain for the rest of Monday’s trading.
“Many investors have renewed buying sentiment since the Nikkei slipped through the 23,000 threshold Friday,” an official at a midsize brokerage house said.
Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., pointed out that the rebound came as “expectations swelled for earnings recoveries” at Japanese companies in the wake of a series of bigger-than-expected upward revisions to profit projections by major firms.
Meanwhile, an official at a bank-affiliated securities house noted that market participants, in general, were reluctant to engage in active trading in anticipation of turmoil after the presidential election.
On the first section, gainers overwhelmed decliners 1,622 to 497 with 61 issues unchanged. Volume decreased to 1.187 billion shares from Friday’s 1.313 billion shares.
Logistics firm Nippon Express rocketed 10.26% on the firm’s rosier profit forecasts for the current business year ending next March.
KDDI was lifted 4.60% by its announcement of plans to strengthen its capital and business alliance with automaker Toyota, which rose 2.15%.
Among other major winners were underwear-maker Wacoal Holdings and power utility J-Power.
On the other hand, Z Holdings, internet service provider Yahoo Japan’s parent, nosedived 10.61%, after its operating profit estimate for the year through March 2021 failed to beat a market consensus.
Character goods maker Sanrio and semiconductor test device maker Advantest also succumbed to heavy selling pressure.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average advanced 400 points to end at 23,280.
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