The benchmark Nikkei average continued to climb Monday as investors bought stocks that will go ex-dividend the following day.
The 225-issue Nikkei average rose 207.82 points, or 0.71%, to close at 29,384.52, after gaining 446.82 points Friday.
The Topix index of all first section issues edged up 9.18 points, or 0.46%, to finish at 1,993.34. The index advanced 28.61 points the previous trading day.
The Tokyo market opened higher after the U.S. Dow Jones Industrial Average and the S&P 500 index marked record highs on Friday.
Despite losing steam somewhat later in the morning, Tokyo stocks showed resilience as investors rushed to secure rights to dividends for the fiscal year ending Wednesday.
The rise was also part of the market’s technical rally from a four-day drop through last Wednesday, brokers said.
The market cut its gains in late trading as U.S. stock futures plunged in off-hours trading on news of Swiss banking giant Credit Suisse possibly facing a major loss over a hedge fund client defaulting on margin calls.
“Supply-and-demand factors mainly drove the day’s trading, instead of long-term prospects for economic recovery or concerns over the coronavirus crisis,” Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., said.
Kazuo Kamitani, strategist at Nomura Securities Co., warned, “Reports over the margin call defaults will sow distrust toward hedge funds, and close attention must be paid to how much the issue will affect the market.”
Investors are speculating that the Credit Suisse news may be related to an announcement by Japanese brokerage giant Nomura Holdings Monday that said a U.S. subsidiary may incur a loss of some $2 billion, brokers noted.
On the TSE first section, gainers outnumbered decliners 1,225 to 900, with 68 issues unchanged. Volume climbed to 1.826 billion shares from Friday’s 1.282 billion shares.
Chipmaking gear-maker Tokyo Electron and chip testing device manufacturer Advantest jumped 3.32% and 2.60%, respectively, after the U.S. SOX Philadelphia semiconductor index shot up on Friday.
Sony attracted buying after revealing a new electric vehicle prototype to the public on Sunday.
Other winners included daily goods producer Kao and retailer Aeon.
On the other hand, Nomura Holdings plummeted 16.33% following the announcement about the possible significant loss at a Nomura unit.
Some oil names went down after a vessel that became stuck in the Suez Canal was refloated.
Shipping names and airlines also met with selling.
In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average inched down 20 points to end at 29,080.
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