Tokyo stocks gained further ground Thursday on the back of unabated expectations for economic recovery.
The 225-issue Nikkei average of the Tokyo Stock Exchange extended its winning streak to a third trading day, rising 240.45 points, or 0.91%, to close at 26,537.31, the best finish since April 19, 1991. On Wednesday, the index advanced 131.27 points.
The Topix index of all TSE first section issues ended 10.58 points, or 0.60%, higher at 1,778.25 in its five-session bull run, following a 5.27-point rise the previous day.
The market opened moderately lower, after two major U.S. stock indexes — the Dow Jones Industrial Average and the S&P 500 — fell back Wednesday due chiefly to a rise in U.S. unemployment claims.
But stocks quickly returned to positive terrain as investors stepped up “buying the dip” in anticipation of a long-lasting economic recovery, brokers said.
After going sideways amid a growing wait-and-see mood ahead of Thanksgiving Day in the United States, both the Nikkei and Topix indexes went up again in the late afternoon.
“Active purchases of technology stocks led to the overall market’s advance,” Hirohumi Yamamoto, strategist at Toyo Securities Co., said, pointing to the tech-heavy U.S. Nasdaq composite index’s record-breaking closing the previous day.
“The popularity of the tech sector reflected investors’ hopes for post-coronavirus pandemic growth,” said Kazuo Kamitani, Nomura Securities Co.’s senior associate at the Investment Research & Investor Services Department.
Upward earnings estimate revisions made by many companies for the year through next March suggest that stocks would go further north in the medium to long term, he added.
On the TSE first section, gainers outnumbered decliners 1,299 to 791 with 88 issues unchanged. Volume fell to 1.164 billion shares from Wednesday’s 1.549 billion shares.
Chipmaking gear maker Tokyo Electron and medical information provider M3 jumped 3.28% and 4.35% to rewrite their respective year-to-date highs.
Among other upbeat tech names were growth business investor SoftBank Group, mobile carrier KDDI and internet advertising firm CyberAgent.
On the other hand, Japan Airlines tumbled 7.99% on the delivery day for publicly offered new shares.
Cyclicals, such as transport stocks, also met with selling.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average rose 200 points to end at 26,580.
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