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Tokyo stocks staged a powerful rally Thursday, with investors flocking to bargains after the recent market sell-offs.

The 225-issue Nikkei average rocketed 679.62 points, or 2.38%, to end at 29,188.17, after giving up 591.83 points to slip through the 29,000 threshold Wednesday.

The Topix index of all first section issues jumped 34.32 points, or 1.82%, to finish at 1,922.50, in a turnaround from a 38.07-point plunge the previous day.

The market opened broadly higher, after all three key U.S. market indicators rebounded Wednesday thanks in part to President Joe Biden’s achievement of the coronavirus vaccination goal for his first 100 days in office and announcement of plans to boost vaccine rollout.

Participants rushed to buy back, in particular, economically sensitive cyclicals that were beaten down in the latest bear market, where the Nikkei lost over 1,170 points in two market days, brokers said.

Rosy earnings posted by Dutch semiconductor giant ASML fueled buying of technology issues, Masayuki Otani, chief market analyst at Securities Japan Inc., said.

Concerns over the rising U.S.-China tensions were allayed by Beijing’s announcement of Chinese President Xi Jinping’s attendance at a Biden-proposed online climate summit on Thursday, Kazuo Kamitani, strategist at Nomura Securities Co., pointed out.

Meanwhile, Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., noted that “selling only took a pause” while fears over the resurgence of coronavirus cases in Japan persisted.

On the TSE first section, gainers overwhelmed decliners 1,822 to 287 while 82 issues were unchanged. Volume fell to 1.083 billion shares from Wednesday’s 1.262 billion shares.

Chipmaking gear-maker Tokyo Electron soared 4.58% and chip-testing device manufacturer Advantest 4.20% amid the popularity of the semiconductor and other tech sectors.

Steelmakers such as JFE were among the biggest beneficiaries of strong buying demand for cyclicals.

Toshiba snapped its four-session losing streak on U.S. investment firm Bain Capital’s reported consideration of a buyout offer for the Japanese electronics and plant giant.

On the other hand, oil stocks, such as Idemitsu and Eneos, suffered from a crude oil market slump.

In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average jumped 580 points to end at 29,120.

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