Tokyo stocks climbed further Tuesday, with investor sentiment brightened by an overnight rebound on Wall Street.
The 225-issue Nikkei average of selected issues listed on the first section of the Tokyo Stock Exchange jumped 271.12 points, or 0.97%, to close at 28,362.17, after surging 427.66 points Monday.
The Topix index of all first-section issues ended 17.18 points, or 0.94%, higher at 1,847.02 following a 21.06-point gain previous day.
The Tokyo market enjoyed a robust start as investors rushed to buy back a wide range of issues, with strong buying sentiment reinvigorated by climbs in all three major U.S. stock indexes, including the Dow Jones industrial average, on Monday.
The U.S. market advances came in response to receding concerns pertaining to speculative trading by individual investors, which had thrown the market into turmoil recently, as well as expectations of a fresh coronavirus relief package in the United States, brokers said.
Supported by gains in other Asian equity markets, Tokyo stocks rose further later in the morning.
Although their underside was supported by buoyant Dow futures in off-hours trading, both the Nikkei and Topix indexes turned top-heavy and fluctuated tightly in positive territory in the afternoon.
Despite the U.S. market’s rise Monday, Maki Sawada, strategist at Nomura Securities Co., said, “Many players on the Tokyo market still wanted to see how the U.S. stock market will move (later on Tuesday) as their concerns over the market’s recent unstable moves have not been wiped out.
“If the U.S. stock market’s chaos calms down, investors’ focus will shift to earnings releases by Japanese companies,” she said. “Until then, the Tokyo market is expected to be top-heavy.”
Meanwhile, the government’s plan to extend its coronavirus state of emergency for 10 prefectures for a month until March 7 had “very little impact on the day’s trading as the market had already factored in the extension,” an official at an asset management firm said.
In the TSE first section, gainers far outnumbered losers 1,730 to 379, while 82 issues were unchanged. Volume increased to 1.168 billion shares from Monday’s 1.145 billion shares.
Cosmetics maker Shiseido gained 7.18%, following upward revisions to its profit estimates for the year that ended in December 2020.
Electronic parts maker Rohm surged 5.82%, after revising up its operating profit forecast for the year ending in March.
Among other major winners were auto parts supplier Denso and entertainment giant Sony.
On the other hand, Kobayashi Pharmaceutical plunged 6.86%, as market players were dismayed to see that the drugmaker has revised down its sales and operating profit goals for the year ending in December 2022, which were included in its medium-term management plan.
Also on the minus side were game-maker Nintendo and optical equipment-maker Olympus.
In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average rose 220 points to end at 28,360.
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