Tokyo stocks gained further ground Friday, in the wake of a broad-based rally on Wall Street.
The Nikkei average of 225 selected issues listed on the first section of the Tokyo Stock Exchange rose 219.58 points, or 0.78%, to close at 28,317.83. On Thursday, the key index turned up by 53.80 points.
The Topix index of all first-section issues finished 8.77 points, or 0.46%, higher at 1,904.69, following a 0.68-point rise the previous day.
After opening moderately higher, the market accelerated its upswing on active buying in response to all three major U.S. market indexes’ rebounds Thursday.
The market cut gains toward noon, as sentiment was dampened by media reports that the Japanese government would refrain from administering AstraZeneca PLC’s coronavirus vaccine for the time being after its approval, brokers said, adding that selling gathered steam ahead of the weekend.
Stocks picked up again in the afternoon, gaining support from higher U.S. index futures in off-hours trading.
Technology stocks led the day’s advance thanks to a continued rise in the U.S. SOX Philadelphia semiconductor index, brokers said.
Kazuo Kamitani, strategist at Nomura Securities Co., noted that the market was underpinned by “value stock buying” although its topside was capped by concerns over the slow vaccine rollout in the country.
Recent bullish earnings reports by Japanese firms have wiped away the view that Tokyo stocks were overvalued, Kamitani also pointed out.
On the TSE first section, gainers marginally outnumbered decliners 1,076 to 1,009 while 107 issues were unchanged. Volume grew to 1.037 billion shares from Thursday’s 994 million shares.
Job information service provider Recruit Holdings surged 3.85% and internet advertising firm Cyberagent 3.65%, after their target prices were raised by Mitsubishi UFJ Morgan Stanley Securities Co. and Mizuho Securities Co., respectively.
Takeda rose on a news report that the Japanese drugmaker plans to produce U.S. partner Moderna Inc.’s coronavirus vaccine in the Japan.
Electronic parts maker Taiyo Yuden and chipmaking gear manufacturer Screen stretched their respective winning streaks amid the tech-sector popularity.
On the other hand, resources developer Inpex plunged 3.86% due to a further crude oil price fall.
Railways suffered from the emerging prospect that the ongoing coronavirus state of emergency, set to expire at the end of the month, will be extended.
In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average rose 260 points to end at 28,350.
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