Tokyo stocks continued to advance Friday, as sentiment was brightened further by U.S. President Joe Biden doubling the coronavirus vaccination goal.
The 225-issue Nikkei average soared 446.82 points, or 1.56%, to close at 29,176.70, after rebounding by 324.36 points Thursday.
The Topix index of all first section issues climbed 28.61 points, or 1.46%, to finish at 1,984.16, following a 26.97-point rise the previous day.
The Tokyo market shot up right after the opening bell, in the wake of all three major U.S. stock indexes, including the Dow Jones Industrial Average, turning higher Thursday on Biden’s fresh pledge in his first news conference as president to administer 200 million vaccine shots in his first 100 days in office. Previously, he vowed to give 100 million jabs.
Investors also vigorously bought stocks that will go ex-dividend on Tuesday to get entitled to receive dividends for fiscal 2020, which ends the following day, brokers said.
After the initial spurt, the market saw selling pressure build up. But it regained strength in the afternoon, aided by rises in Chinese shares and Dow futures in off-hours trading.
“Biden’s new vaccination pledge fueled expectations for a global economy recovery,” said Hirohumi Yamamoto, strategist at Toyo Securities Co.
“Participants continued to buy the dip following the recent market slump,” which had weighed down the Nikkei for four straight sessions through Wednesday, an official at a major securities firm noted.
But Yamamoto also pointed out that the market turned top-heavy after the initial buying ran its course, as investors came to sit on the fence in renewed response to U.S. Federal Reserve Chairman Jerome Powell’s comments in a media interview that could be taken as hawkish to some extent and ahead of the release of the U.S. jobs report for March next week.
On the TSE first section, gainers outnumbered decliners 1,781 to 350, while 62 issues were unchanged. Volume grew to 1.282 billion shares from Thursday’s 1.243 billion shares.
Technology-oriented stocks rebounded after sliding the previous day, with tech investor SoftBank Group climbing by 1.80% and chipmaking gear manufacturer Tokyo Electron by 1.56%.
Heavy machinery maker IHI surged 5.13% after SMBC Nikko Securities Inc. raised its target price for the firm.
Railway operators such as Keio and Odakyu also attracted buying.
On the other hand, precision machinery-makers Nikon and Citizen Watch were among noticeable losers.
In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average climbed 480 points to end at 29,100.
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