Tokyo stocks rose for the fifth consecutive trading session on Wednesday, tracing the movements of U.S. stock index futures.
The 225-issue Nikkei average of the Tokyo Stock Exchange advanced 88.21 points, or 0.31%, to finish at 28,642.19, after climbing 189.37 points on Tuesday.
The Topix index of all TSE first section issues inched up 1.15 points, or 0.06%, to end at 1,920.67. The index rose 6.48 points the previous day.
The Tokyo market began on a weaker note following lackluster finishes on Wall Street the day before, but rebounded into positive terrain on the strength of Dow Jones Industrial Average futures in off-hours trading.
The market cut gains in late morning trading as heavyweight semiconductor issues met with selling.
Stocks moved narrowly in the afternoon, caught between profit-taking and buying on dips amid a lack of fresh market-moving news, brokers said.
Hirohumi Yamamoto, strategist at Toyo Securities Co., said that market players in Tokyo were not significantly swayed by the previous day’s Wall Street decline due to different conditions in the two markets.
“The U.S. market drop was caused in part by profit-securing selling, as major market gauges such as the Dow were hovering close to record highs,” Yamamoto said. “On the other hand, Tokyo stocks have been struggling to rebound fully from a sell-off earlier this month.”
Brokers said that buying demand for large-cap issues was behind the Tokyo market’s gains, with an official from a midsize securities firm saying that such demand grew from expectations for economic recovery after the summer following a speedy rollout of novel coronavirus vaccinations.
In the TSE first section, losers outnumbered gainers 1,308 to 768 despite the key indexes’ gains, while 116 issues were unchanged. Volume grew to 1.096 billion shares from Tuesday’s 992 million shares.
Airlines JAL and ANA surged 4.01% and 2.91%, respectively, on expectations for post-coronavirus recovery in air travel demand after concerns about an extension of Japan’s state of emergency was fully factored into the market the day before.
Railway firms such as JR East and JR West also rallied following drops caused by news of a possible state of emergency extension.
Major Nikkei components such as Fast Retailing and M3 saw modest gains.
On the other hand, cyclicals, such as steel-makers, and banking names succumbed to selling, with the latter especially taking the effect of a decline in U.S. long-term interest rates.
Semiconductor test device manufacturer Advantest erased early gains to end lower.
Other major losers included internet advertising firm Cyberagent.
In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average fell 10 points to end at 28,590.
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