Roundup: Tokyo stocks close sharply higher on buybacks after selloff
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E-mail Xinhua, March 1, 2021
TOKYO, March 1 (Xinhua) -- Tokyo stocks closed sharply higher Monday, with the benchmark Nikkei stock index posting its biggest point gain in almost nine months, as investors sought to buy back oversold issues following the market's hefty losses late last week.
The 225-issue Nikkei Stock Average added 697.49 points, or 2.41 percent, from Friday to close the day at 29,663.50.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, jumped 37.99 points, or 2.04 percent, to end the day at 1,902.48.
Local brokers said that stocks here rebounded from hefty losses late last week as a halt in the rise of U.S. bond yields helped lift large-cap technology issues higher, with investors here keen to buy back issues oversold at reasonable prices.
"The Nikkei will reclaim the 30,000 level sooner or later depending on how the U.S. bond yields will perform," Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, was quoted as saying.
The Nikkei relinquished more than 1,200 points on Friday, marking its biggest daily point drop since June 2016, triggered by a spike in global bond yields fueling concerns about market stability.
Technology shares which helped propel the Nikkei past the psychologically important 30,000 level amid the market's recent rally ahead of a broad selloff late last week were bought back, with chip-oriented issues attracting buying, traders here said.
Investor sentiment was also buoyed by solid performances on Asian markets, notably in Shanghai and Hong Kong, strategists here highlighted.
As for tech shares finding favor, Advantest jumped 4.2 percent, while Screen Holdings climbed 3.5 percent. Tokyo Electron, meanwhile, ended the day 2.1 percent higher.
By the close of play, information and communication, pulp and paper, and construction-linked issues comprised those that gained the most, and issues that rose outpaced those that fell by 1,931 to 229, while 34 ended the day unchanged.
On the main section on Monday, 1,250.01 million shares changed hands, dropping from Friday's volume of 1,688.76 million shares. Enditem
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