Tokyo stocks staged a sound rebound Thursday, in the wake of broad-based advance on Wall Street.

The 225-issue Nikkei average retook 30,000 by going up 496.57 points, or 1.67%, to close at 30,168.27, after the benchmark index dropped 484.33 points Wednesday.

The Topix index of all first section issues ended 23.16 points, or 1.22%, higher at 1,926.23, following a 35.28-point slide the previous day.

Stocks spurted right after the market opening as buying sentiment was boosted by rises Wednesday in all three major U.S. stock indexes including the Dow Jones Industrial Average, which closed at yet another record-high.

But the market soon lost upward momentum and went sideways for the rest of the session while being sandwiched between buying on expectations for the global economy’s recovery from the novel coronavirus crisis and selling induced by U.S. long-term interest rates’ uptrend.

“Investors find it necessary to have clearer recovery prospects before stepping up buying,” said Kazuo Kamitani, strategist at Nomura Securities Co.

News about progress in coronavirus vaccinations and developments toward the U.S. coronavirus relief package’s congressional passage alone cannot sufficiently fuel buying sentiment any longer, he pointed out.

Hirohumi Yamamoto, strategist at Toyo Securities Co., offered the view that speculators have been capitalizing on interest rate spike concerns to try to push down the market, noting that the current rates are not so high compared with the pre-pandemic levels.

On the TSE first section, gainers outnumbered decliners 1,383 to 707 while 102 issues stayed flat. Volume decreased to 1.460 billion shares from Wednesday’s 1.570 billion shares.

Silicon wafer-maker Sumco shot up 5.15% and technology investor SoftBank Group jumped 3.84%, reflecting the renewed popularity of tech stocks.

Furniture retailer Nitori was buoyed by its strong sales so far this month.

On the other hand, Aeon sank 4.93% after the retailer went ex-dividend Thursday.

Suzuki succumbed to selling following the automaker’s announcement the previous day of its longtime leader Osamu Suzuki’s retirement.

In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average grew 550 points to end at 30,190.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.