Tokyo stocks extended its winning streak to a fourth trading day on Tuesday on the strength of semiconductor-related issues.
The 225- issue Nikkei average of the Tokyo Stock Exchange gained 189.37 points, or 0.67%, to finish at 28,553.98, after climbing 46.78 points on Monday.
The Topix index of all TSE first section issues rose 6.48 points, or 0.34%, to end at 1,919.52, following an 8.35-point advance the previous day.
The Tokyo market got off to a strong start after all three key U.S. market gauges closed higher on Monday following a slide of U.S. long-term interest rates.
Market players especially picked up chip-related names after the U.S. SOX Philadelphia semiconductor index jumped the previous day, brokers said.
But stocks’ gains were capped by selling on rally, as worries over the slowness of Japan’s coronavirus vaccine rollout continued to dampen investor sentiment, brokers said.
The market moved little in the afternoon as the lack of new trading incentives pushed investors to the sidelines.
“With no significant events to pay attention to this week, and with the earnings reporting season having already finished, players are struggling for incentives to trade on,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co. “All the market can do is trace the movements of U.S. stocks.”
“Market sentiment is fundamentally different between Japan and the West due to the difference in progress on COVID-19 vaccinations,” making the Nikkei top-heavy, an official at a bank-affiliated securities company noted.
The U.S. government’s travel advisory warning citizens to avoid trips to Japan due to the coronavirus epidemic also weighed on the market, the official added.
In the TSE first section, falling issues outnumbered rising ones 1,417 to 698 despite the key indexes’ gains, while 77 issues were unchanged. Volume fell slightly to 992 million shares from Monday’s 993 million shares.
Chipmaking gear-maker Screen and test device manufacturer Advantest were among the semiconductor issues that attracted buying, rising 2.07% and 2.35%, respectively.
Heavyweight components such as SoftBank Group and Fast Retailing hovered in positive territory to push up the Nikkei.
Steel-makers Kobe Steel and JFE saw strong gains.
On the other hand, shipping firms Nippon Yusen and Mitsui O.S.K. Lines retreated 2.61% and 2.30%, respectively.
Operators of gyūdon beef bowl restaurants such as Yoshinoya and Matsuya Foods slipped after a media report that the price of imported meat had spiked from the year before, triggering concerns over the companies’ profitability.
In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average advanced 260 points to end at 28,600.
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