Tokyo stocks snapped a three-session losing streak Monday, with economic recovery prospects spurring buybacks.
The 225-issue Nikkei average rose 138.11 points, or 0.46%, to close at 30,156.03, in a turnaround from a 218.17-point drop Friday.
The Topix index of all first section issues ended 9.40 points, or 0.49%, higher at 1,938.35 after losing 12.96 points the previous trading day.
The Tokyo market got off to a bullish start after the U.S. Dow Jones Industrial Average and Nasdaq composite index staged modest rallies on Friday, and extended gains until around midmorning.
Stocks that fell markedly in the three-session slump through Friday, which pushed down the Nikkei by over 400 points, were particularly hunted amid renewed expectations for the global economy’s recovery from the coronavirus crisis, brokers said.
But the market lost steam later, as selling pressure built up in the wake of a drop in U.S. index futures in off-hours trading.
“Market-moving factors haven’t changed much since last week,” said Masayuki Otani, chief market analyst at Securities Japan Inc.
He specifically noted that progress of vaccination efforts around the globe has kept investors confident in economic recovery.
Maki Sawada, strategist at Nomura Securities Co., pointed out that active trading was put on hold ahead of scheduled speeches by European Central Bank President Christine Lagarde later on Monday and by U.S. Federal Reserve Chairman Jerome Powell on Tuesday.
On the first section, gainers outnumbered decliners 1,542 to 577 while 75 issues stayed unchanged. Volume inched up to 1.250 billion shares from Friday’s 1.223 billion shares.
Coronavirus-sensitive issues such as airline ANA attracted buying following the arrival of the second batch of Pfizer vaccines in Japan on Sunday.
Semiconductor-sector stocks benefited from rises in their U.S. peers on Friday, with chipmaking gear manufacturers Tokyo Electron and Screen jumping 6.34% and 3.54%, respectively.
Tire-maker Yokohama Rubber rocketed 8.94% after its earnings projections for the current business year ending December, announced Saturday, beat market consensuses
On the other hand, optical equipment maker Olympus fell back by 4.84% after climbing close to its year-to-date high last week.
Other noticeable losers included air conditioner-maker Daikin.
In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average rose 130 points to end at 30,170.
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