Tokyo stocks managed to rise further in mixed trading Wednesday, thanks to the strength of overseas markets.
The 225-issue Nikkei average inched up 8.62 points, or 0.03%, to finish at 29,036.56, after soaring 284.69 points Tuesday.
The Topix index of all first section issues closed 2.06 points, or 0.11%, higher at 1,919.74 to widen gains from 24.10 points it marked the previous day.
Stocks got off to a firmer start after all three major U.S. stock market gauges, including the Dow Jones Industrial Average, rose Tuesday due to a halt in U.S. long-term interest rates’ ascent. But profit-taking pressure quickly built up to send the market into negative terrain temporarily.
Thereafter, both the Nikkei and Topix indexes moved tightly around Tuesday’s closing levels in mixed trading, sandwiched between buying prompted by rebounds in Chinese shares and selling instigated by a fall in Dow futures in off-hours trading, brokers said.
“The key U.S. 10-year Treasury yield’s uptrend has not yet come to an end,” Yutaka Miura, senior technical analyst at Mizuho Securities Co., said. “It’s just taking a breather.”
“Trading was sluggish as players were wondering whether to buy or sell while having no idea whether the yield would soon rebound or not,” he added.
An official at a bank-affiliated brokerage firm said the market is unlikely to stage a powerful rally until U.S. long-term interest rates become stable.
On the first section, decliners outnumbered gainers 1,218 to 879, while 97 issues were unchanged. Volume decreased to 1.393 billion shares from Tuesday’s 1.621 billion shares.
Industrial robot-maker Fanuc surged 3.35%, following the release of an industry report showing strong machine tool order receipts at Japanese makers in February.
Drugmaker Shionogi jumped 3.24% to extend its winning streak to a fourth market day, after its British partner reported positive clinical trial data for its novel HIV treatment.
Mobile phone carrier KDDI and technology and entertainment giant Sony also rose.
On the other hand, minivehicle-maker Suzuki plunged 2.30%, in the wake of a news report that rivals Nissan and Mitsubishi Motors will launch electric minivehicles as early as next year.
In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average fell 90 points to end at 28,980.
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