Tokyo stocks rebound on back of extended U.S. rally, weaker yen

Jiji Press TOKYO (Jiji Press) — Stocks bounced back on the Tokyo Stock Exchange Friday, aided by U.S. equities’ continued advance and a pause in the yen’s appreciation against the dollar.

The 225-issue Nikkei average rose 195.90 points, or 0.97 percent, to end at 20,359.70. On Thursday, the key market gauge lost 263.26 points.

The TOPIX index of all First Section issues was up 7.72 points, or 0.51 percent, at 1,529.73. It slumped 13.10 points the previous day.

The Tokyo market opened higher, after the Dow Jones industrial average extended its winning streak to a fifth session on the New York Stock Exchange on Thursday.

Investors were also encouraged by the dollar turning higher against the yen, brokers said.

The market maintained strength for the rest of Friday’s trading, thanks in part to active buying of Fast Retailing, a heavily weighted component of the Nikkei average, which helped push up the price indicator by over 100 points, they noted.

“Investor sentiment improved after the Dow’s five-session rally to retake 24,000,” said Yoshihiko Tabei, chief analyst at Naito Securities Co.

Hiroaki Hiwada, strategist at Toyo Securities Co., also observed signs of improvement in market sentiment. For instance, Yaskawa Electric fared well, although the company said the previous day that it had revised down earnings estimates for the current business year ending next month, he pointed out.

But he added that some players retreated to the sidelines ahead of the three-day weekend in Japan. The market will be closed on Monday for a national holiday.

Rising issues slightly outnumbered falling ones 1,033 to 1,003 in the TSE’s First Section, while 92 issues were unchanged.

Volume edged down to 1,295 million shares from Thursday’s 1,308 million shares.Speech

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