Tokyo stocks rebounded on Tuesday, reflecting buybacks and buying on dips.
The 225-issue Nikkei average rose 212.88 points, or 0.72%, to close at 29,751.61, in a turnaround from a 229.33-point fall Monday.
The Topix index of all first section issues finished 3.96 points, or 0.20%, higher at 1,958.55, after shedding 4.88 points the previous day.
The Tokyo market enjoyed a strong start, as a wide range of issues attracted buybacks from the opening bell following the previous day’s decline, brokers said.
Buying on dips by individual investors also supported the market until the early afternoon, helping the Nikkei climb over 300 points at one point.
The market failed to extend gains further later in the afternoon due to the absence of fresh buying incentives, amid a growing wait-and-see mood among market players ahead of earnings announcements by U.S. and Japanese companies.
“The Tokyo market turned top-heavy against the backdrop of mounting concerns over the coronavirus infection situation in Japan,” after the daily number of new coronavirus cases in Osaka Prefecture exceeded 1,000 on Tuesday for the first time, Kazuo Kamitani, strategist at Nomura Securities Co., said.
Some market sources said that buying sentiment in the afternoon was dampened by a fall in the U.S. Dow Jones Industrial Average futures in off-hours trading.
In the TSE first section, gainers outnumbered losers 1,110 to 975, while 105 issues were unchanged. Volume inched up to 1.016 billion shares from Monday’s 954 million shares.
Takashimaya surged 4.28%, as the department store operator’s operating profit forecast for the year ending in February 2022 exceeded the market consensus.
Glass manufacturer AGC rose for the third consecutive session, as market players applauded its better-than-expected operating profit outlook for the year ending in December 2021.
Among other major winners were cosmetics maker Shiseido and clothing store chain Fast Retailing.
On the other hand, semiconductor-related issues, including TDK and Taiyo Yuden, succumbed to selling, due to a fall of the U.S. SOX Philadelphia semiconductor index Monday.
Airline JAL and railway operator JR Tokai also went down, reflecting the market’s concerns over the spikes in the number of coronavirus cases in Japan.
In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average advanced 200 points to end at 29,780.
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