Tokyo stocks staged a modest rebound Wednesday, chiefly supported by buybacks.

The 225-issue Nikkei average gained 34.16 points, or 0.12%, to close at 29,730.79, in a turnaround from a loss of 392.62 points on Tuesday.

The Topix index of all first section issues finished 13.09 points, or 0.67%, higher at 1,967.43, after shedding 29.20 points the previous day.

From the outset, investors moved to buy shares that were sold the previous day despite dismal performances of all three major U.S. market indicators including the Dow Jones Industrial Average.

In addition, sentiment for buying the dip was stimulated by the International Monetary Fund’s lifting of its 2021 global growth projection to 6.0% on Tuesday, brokers said.

After the bout of buying ran its course, however, both the Nikkei and Topix indexes fell into negative territory, as selling pressure built up in response to a drop in Dow futures in off-hours trading.

Brokers also said that stocks were weighed down by concerns over the resurgence of the coronavirus in Japan, after Osaka Prefecture’s daily cases hit a record 791 the previous day to surpass Tokyo’s for the eighth straight day.

Renewed moves to buy the dip pushed the market back into positive terrain in the early afternoon. But the rebound prompted players to take profits, resulting in mixed trading for the rest of the session amid a dearth of fresh market-moving news.

“The market’s failure to stage a powerful rebound in the morning led to the subsequent drop,” an asset manager said.

Some participants said falls in Chinese shares prevented Tokyo stocks from rising further.

Until the start of the earnings season next week, “overseas market developments would determine a direction of trading here,” said Yutaka Miura, senior technical analyst at Mizuho Securities Co.

On the TSE first section, gainers overwhelmed decliners 1,839 to 310 while 41 issues were unchanged. Volume fell to 1.083 billion shares from Tuesday’s 1.135 billion shares.

Toshiba rocketed 18.28%, after a news report said British investment fund CVC Capital Partners has offered to acquire the Japanese electronics and plant giant.

Chipmaker Renesas extended its winning streak to a third session on a reported production shift from a fire-hit factory to another domestic plant.

Electronic parts maker TDK and parcel delivery firm Yamato Holdings were also upbeat.

Meanwhile, major losers included drugmakers Daiichi Sankyo and Eisai.

In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average rose 10 points to end at 29,710.

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