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Tokyo stocks rebounded on Wednesday, thanks to buying on dips and buybacks after their recent falls.

The Nikkei average of 225 selected issues listed on the first section of the Tokyo Stock Exchange climbed 150.93 points, or 0.51%, to finish at 29,559.10, after surrendering 255.33 points on Tuesday.

The Topix index of all first-section issues closed 9.69 points, or 0.51%, higher at 1,904.54, in a turnaround from a 7.63-point drop the previous day.

Market participants started purchases on dips and buybacks from the opening bell following the market’s downturn the day before, brokers said.

After the bout of such purchases ran their course, both the Nikkei and Topix indexes fell into negative territory due to mounting profit-taking pressure.

Although returning to the sunny side in the afternoon, helped by continued moves to buy on dips, the key indexes fluctuated within a narrow range amid a dearth of fresh trading incentives.

On the key market gauges’ fallbacks to the minus side in the morning, an official at a midsize securities firm observed that the market was “unable to fully absorb selling as investors were reluctant to engage in active buying” after the indexes finished Tuesday’s trading in negative territory despite a strong start.

Meanwhile, some brokers said that the market throughout Wednesday’s trading was buoyed by news reports that drugmaker Takeda is planning to file for Japanese regulatory approval as early as this week for a coronavirus vaccine developed by U.S. biotech startup Moderna Inc.

On the other hand, a strategist at an asset management firm said that the market’s rebound from the previous day’s fall was limited due to drops in semiconductor-related issues, which came in response to a plunge in the SOX Philadelphia semiconductor index on Tuesday.

In the TSE first section, gainers overwhelmed losers 1,338 to 776 while 80 issues stayed unchanged. Volume declined marginally to 1.206 billion shares from Tuesday’s 1.292 billion shares.

Takeda surged 3.18% as market players reacted positively to the news regarding the application for approval for the vaccine, as coronavirus vaccines are key to bringing the pandemic to an end, an official at a securities firm said.

Household goods retailer Ryohin Keikaku advanced 2.24%, after announcing strong same-store sales in February.

Kobe Steel and electronics giant NEC also attracted active buying.

Of the semiconductor-related issues that suffered drops, silicon wafer producer Shin-Etsu Chemical tumbled 2.02% and chipmaking gear-maker Tokyo Electron sank 1.22%.

In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average gained 100 points to end at 29,590.

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