Tokyo stocks rebound slightly on buying on dips


Stocks rebounded slightly on the Tokyo Stock Exchange Wednesday, supported by buying on dips.

The 225-issue Nikkei average gained 4.72 points, or 0.02 percent, to close at 19,984.62. On Tuesday, the key market shed 190.92 points.

The Topix index of all first-section issues closed up 0.65 point, or 0.04 percent, at 1,597.09, after falling 13.53 points the previous day.

In the morning session, selling outpaced buying after the Dow Jones industrial average lost further ground in New York on Tuesday and the dollar temporarily retreated below ¥109.50. Led by losses in export-oriented issues, the Nikkei average briefly fell more than 70 points in early trading.

But stocks resisted further falls thanks to buying on dips, with the key market gauges popping up into positive territory in the afternoon.

Expectations for exchange-traded fund purchases by the Bank of Japan also supported the market, brokers said.

The Nikkei average retook 20,000 briefly in late trading, but the market’s topside was capped amid a growing wait-and-see mood, according to brokers.

Pointing to thin trading especially in the afternoon, an official of a bank-affiliated securities firm said that investors were unable to step up either selling or buying ahead of key events on Thursday.

The events include Britain’s general election and testimony in the U.S. Congress by former Federal Bureau of Investigation Director James Comey over Russia-linked allegations surrounding U.S. President Donald Trump.

Uncertainties over the results of the events brought about some risk-averse sentiment in the market, the official said.

“Investors are willing to buy on dips on the back of brisk corporate earnings, but it is difficult for them to increase purchases in a way that pushes up the market before such events,” said Masashi Itoga of Mito Securities Co.’s Investment Information Department.

“In order to test its upside, the market needs to confirm whether the dollar will reverse its course” and rise against the yen after seeing the outcome of the U.S. Federal Reserve’s policy-setting meeting next week, where an interest rate hike is expected to be determined, Itoga said.

Rising issues outnumbered falling ones 1,150 to 693 in the TSE’s first section, while 174 issues were unchanged.

Volume increased to 1.72 billion shares from Tuesday’s 1.70 billion shares.

Mega-bank groups Mitsubishi UFJ, Sumitomo Mitsui and Mizuho, insurer Tokio Marine and brokerage firm Nomura were buoyant.

Oil companies Japex, Inpex and JXTG Holdings also attracted buying.

Other major winners included mobile phone carrier SoftBank Group, semiconductor-related Tokyo Electron, electronics maker Panasonic and daily goods producer Kao.

By contrast, automakers Toyota and Honda, camera producer Canon and industrial robot manufacturer Fanuc met with selling.

Drug makers Takeda and Astellas, clothing store chain operator Fast Retailing and retail giant Seven & I Holdings were also on the minus side.

In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average fell 20 points to end at 19,950.

Add a Comment

Your email address will not be published. Required fields are marked *