Tokyo stocks shrugged off profit-taking to add to gains Friday, underpinned by unabated anticipation for economic recovery.
The 225-issue Nikkei average of the Tokyo Stock Exchange advanced 107.40 points, or 0.40%, to close at 26,644.71, the highest closing since April 18, 1991, after the key index climbed 240.45 points Thursday.
The Topix index of all TSE first section issues ended 8.27 points, or 0.47%, higher at 1,786.52, following a 10.58-point rise the previous day.
The Nikkei extended its winning streak to a fourth session and the Topix to a sixth session.
After opening almost flat amid a dearth of trade incentives due to the U.S. market’s closure on Thanksgiving Day, stocks quickly gathered steam.
Although both the Nikkei and Topix dipped into the shady side toward noon as selling to lock in profits and square positions gained ground ahead of the weekend, the indexes soon pared losses on buybacks to go further north until late afternoon.
Prevailing economic recovery hopes backed by progress in coronavirus vaccine development and rosier corporate earnings prospects kept underpinning the market, brokers said, adding that a rise in U.S. stock index futures in off-hours trading gave a boost to buying in the afternoon.
“Individual investors led the day’s transactions while foreign players were absent due to the U.S. holiday,” an official at a bank-affiliated securities house said.
Maki Sawada, vice president of Nomura Securities Co.’s Investment Research & Investor Services Department, said stocks “grew top-heavy” in late trading.
Sentiment was weighed on by prefectural governors’ requests for shortened opening hours for restaurants and bars and Prime Minister Yoshihide Suga’s remarks suggesting that efforts in the next three weeks will be critical for Japan’s fight against the novel coronavirus, she noted.
On the TSE first section, gainers outnumbered decliners 1,500 to 608 with 68 issues unchanged. Volume increased to 1.529 billion shares from Thursday’s 1.164 billion shares.
Technology investor SoftBank Group and medical information provider M3 continued to benefit from the popularity of the tech sector, rising 2.27% and 2.57%, respectively.
Mitsui Fudosan attracted buying after media reports that the realtor plans to acquire stadium operator Tokyo Dome through a tender offer.
Chipmaking gear-maker Tokyo Electron extended gains to rewrite its year-to-date high for the second consecutive session.
On the other hand, utilities Tokyo Gas and Osaka Gas plunged 2.63% and 2.38%, respectively.
Automakers including Nissan and Honda succumbed to selling.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average rose 50 points to end at 26,630.
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