Tokyo stocks turn modestly higher on U.S. futures rise

Jiji Press

17:00 JST, January 24, 2022

TOKYO (Jiji Press) — Tokyo stocks staged a modest rebound Monday thanks to a rise in U.S. index futures.

The Nikkei average of 225 selected issues listed on the first section of the Tokyo Stock Exchange gained 66.11 points, or 0.24%, to finish at 27,588.37, in a turnaround from a drop of 250.67 points Friday.

The TOPIX index of all TSE first-section issues closed up 2.69 points, or 0.14%, at 1,929.87, following an 11.35-point loss the previous trading day.

The market took a blow at the outset from continued drops Friday in all three key U.S. stock gauges including the Dow Jones industrial average, which extended its losing streak to a sixth session.

But investors gradually renewed buying sentiment, in view of U.S. index futures’ advance in pre-market trading.

Although both the Nikkei and TOPIX indexes constantly extended their gains after struggle for direction by midmorning, their gains were limited as players increasingly refrained from active purchasing ahead of the U.S. Federal Reserve’s two-day Federal Open Market Committee meeting through Wednesday.

“Other than U.S. futures movements, there were no major drivers,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

The market turned buoyant as individual investors came to buy the dip, an asset manager noted.