Roundup: Tokyo stocks close sharply higher on buybacks after selloff, chip issues gain

0 Comment(s)Print E-mail Xinhua, April 22, 2021
Adjust font size:

TOKYO, April 22 (Xinhua) -- Tokyo stocks closed sharply higher Thursday as investors bought back chip-related and cyclical issues that dropped during the market's two-day selloff triggered by concerns for the domestic economy following an upcoming fresh COVID-19 state of emergency being declared again for major urban areas in Japan.

The 225-issue Nikkei Stock Average soared 679.62 points, or 2.38 percent, from Wednesday to close the day at 29,188.17.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 34.32 points, or 1.82 percent, to finish at 1,922.50.

Local brokers said that sentiment was bolstered by a positive lead from Wall Street overnight, and relatively cheap valuations of stocks following the Nikkei plunging 4 percent as a result of concerns over the looming state of emergency declaration for Tokyo, Osaka among other regions and falling to a one-month low below the 29,000 threshold on Wednesday.

"Investors are buying stocks as prices have become reasonable after declines in the past two days," Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, was quoted as saying.

"An introduction of a state of emergency makes investors wary, but the number of new infections could fall. That might be factored into today's market," Ichikawa said.

Concerns over the economic impact of the emergency periods being implemented through the upcoming Golden Week string of national holidays, with department stores, theme parks and bars and restaurants possibly being asked to temporarily shutter operations, saw some investors choose safe havens like the Japanese currency rather than chase stocks higher, however, some investment analysts said.

Having floated close to the 108 yen line during trading hours, the U.S. dollar at 5 p.m. was quoted at 107.90-91 yen compared with 107.99-108.09 yen in New York and 108.22-24 yen at 5 p.m. on Wednesday in Tokyo.

The euro, meanwhile, was quoted at 1.2043-2045 dollars and 129.95-99 yen against 1.2030-2040 dollars and 130.01-11 yen in New York and 1.2010-2012 dollars and 129.98-130.02 yen in late Wednesday afternoon trade in Tokyo.

By the close of play, marine transportation, iron and steel, and electric appliance issues comprised those that gained the most.

Among chip-oriented issues finding favor following upbeat earnings released by their U.S. and European counterparts, Tokyo Electron leapt 4.6 percent, while Advantest jumped 4.2 percent. Shin-Etsu Chemical, meanwhile, ended the day 3.5 percent higher.

Precision motor maker Nidec climbed 4.5 percent, on hopes the firm will report solid earnings later in the day, while SoftBank Group gained 1.8 percent, on reports the conglomerate will report record earnings next month.

Steelmakers drew buying on reasonable valuations, with Nippon Steel gaining 4.2 percent, while JFE Holdings rose 4.7 percent by the close.

Similarly, shipping firms rose, with Kawasaki Kisen Kaisha gaining 5.5 percent, while Mitsui O.S.K. Lines advanced 3.8 percent.

Issues that rose outpaced those that fell by 822 to 287 on the First Section, while 82 ended the day unchanged.

On the main section on Thursday, 1,083.55 million shares changed hands, dropping from Wednesday's volume of 1,262.32 million shares.

The turnover on the penultimate trading day of the week came to 2,274.68 billion yen (21.06 billion U.S. dollars). Enditem

Follow China.org.cn on Twitter and Facebook to join the conversation.
ChinaNews App Download
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter