Tokyo stocks turned up Monday, with coronavirus-sensitive names attracting buybacks reflecting expectations for the effects of a fresh coronavirus state of emergency in Tokyo, Osaka and two other prefectures.
The 225-issue Nikkei average climbed 105.60 points, or 0.36%, to end at 29,126.23, after shedding 167.54 points Friday.
The Topix index of all first section issues rose 3.17 points, or 0.17%, to finish at 1,918.15, following a 7.52-point dip the previous trading day.
The market took a downturn after getting off to a strong start, but it started advancing again around midmorning led by rebounds in heavily weighted components of the benchmark Nikkei average.
A rise in U.S. stock index futures in off-hours trading helped buoy the market in the afternoon.
An official at a midsize brokerage house noted that investors moved to repurchase stocks deemed sensitive to pandemic-linked developments on expectations that tightened measures under the state of emergency would reduce the number of new coronavirus cases.
The state of emergency was a reason to sell before it was declared but it has now become a reason to buy, Maki Sawada, strategist at Nomura Securities Co., observed.
Meanwhile, Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., pointed out that the Nikkei was “swayed by only a handful of stocks” in largely mixed trading.
“Investors were mostly sitting on the fences to wait for corporate earnings releases,” he said.
On the TSE first section, decliners outnumbered gainers 1,139 to 942 while 109 issues were unchanged. Volume crept up to 974 million shares from Friday’s 955 million shares.
Among the popular coronavirus-sensitive shares, airline ANA soared 5.78% and railway operator JR West 5.23%.
The U.S. SOX Philadelphia semiconductor index’s rise, shown Friday, pushed up chip stocks including manufacturing gear-maker Screen.
Kobe Steel and cybermall operator Rakuten were also upbeat.
On the other hand, M3 dived 5.82%, after the medical information provider failed to post its earnings forecasts for the current year ending next March.
Pharmaceuticals Chugai and Daiichi Sankyo also met with selling.
In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average rose 200 points to 29,170.
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