Tokyo stocks rebounded Thursday, thanks to an overnight Wall Street rise, with the Nikkei closing at the highest level since the collapse of Japan’s bubble economy in the early 1990s.
The 225-issue Nikkei average of the Tokyo Stock Exchange surged 233.60 points, or 0.82%, to close at 28,756.86, the highest finish in some 30 years and five months since Aug. 3, 1990. On Wednesday, the benchmark index gave up 110.20 points.
The Topix index of all first section issues ended 11.06 points, or 0.60%, higher at 1,860.64, after a 6.26-point fall the previous day.
With buying sentiment fueled by record closing highs by all three major U.S. stock indexes, including the Dow Jones Industrial Average, on Wednesday, the Tokyo market spurted from the outset. The Nikkei average jumped over 300 points within minutes of the opening bell.
After the initial bout of buying ran its course, the market turned top-heavy, reflecting mounting profit-taking pressure.
While Tokyo stocks were supported by robust Asian markets, both the Nikkei and Topix indexes fluctuated tightly on the plus side in the afternoon amid the absence of fresh trading incentives.
“Investors were relieved to hear that the inauguration ceremony of new U.S. President Joe Biden was held on Wednesday without major incidents, especially since some media reports had warned beforehand of the possibility of fierce demonstrations and other actions,” said Maki Sawada, strategist at Nomura Securities Co.
On the other hand, some brokers noted that the market, throughout the day, was weighed down by poor performances of semiconductor-related issues, including chipmaking gear maker Tokyo Electron and chip test device manufacturer Advantest.
Sawada said that the Bank of Japan’s two-day policy-setting meeting that ended Thursday “had very little impact” on the day’s trading as the central bank decided to keep its current monetary easing policy unchanged.
Pointing to the lackluster trading in the afternoon, an official at an asset management firm said that investors adopted a wait-and-see stance before BOJ Gov. Haruhiko Kuroda’s news conference later on Thursday to see if he “will drop any hints” on an upcoming BOJ policy review that will be held in March.
On the TSE first section, rising issues outnumbered falling ones 1,288 to 785, while 117 issues were unchanged. Volume decreased slightly to 1.144 billion shares from Wednesday’s 1.150 billion shares.
Dentsu jumped 5.26%, thanks to media reports that an envisaged deal to sell the advertising giant’s main office building in Tokyo is estimated to be worth several hundred billion yen.
Panasonic rose for the fourth consecutive trading session, in response to a news report that the electronics maker has developed a special cooling box to store novel coronavirus vaccines.
Among other major winners were technology investor SoftBank Group and Mitsubishi Chemical Holdings.
On the other hand, semiconductor-related issues succumbed to profit-taking after their recent rosy performances.
Automaker Suzuki and game-maker Konami also fell.
In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average advanced 240 points to end at 28,730.
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