Nikkei Retakes 27,000 on Buybacks after Wall Street Jump

REUTERS File Photo
FILE PHOTO: People pass by an electronic screen showing Japan’s Nikkei share price index inside a conference hall in Tokyo, Japan June 14, 2022.

Tokyo, (Jiji Press)—Tokyo stocks swung up Friday, attracting buybacks after the overnight rebound of U.S. stocks.

The Nikkei average of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section surged 853.34 points, or 3.25 pct, to finish at 27,090.76, retaking the psychologically important threshold of 27,000 for the first time in a week. On Thursday, the Nikkei shed 159.41 points.

The broader TOPIX index jumped 43.58 points, or 2.35 pct, to close at 1,898.19, following a tumble of 14.39 points the previous day.

Both indexes logged their first climbs in five straight trading days.

The Tokyo market mood improved after Wall Street soared Thursday despite a strong reading of the U.S. consumer price index for September.

Although the CPI data confirmed red-hot inflation in the United States and spurred worries about faster interest rate hikes by the U.S. Federal Reserve, investors were more relieved of the event having passed, brokers said.

The market’s upswing weakened somewhat after the Nikkei reached around 27,100, the level it had hovered around prior to the latest sell-off.

“The rally was led by market players covering short positions built up before the CPI release,” said Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc.

Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co., described the market climb as a “mere technical rally,” saying that it was not fueled by any positive factor.

On the Prime section, gainers trounced decliners 1,751 to 61 while 25 issues were unchanged. Volume grew to 1,319 million shares from Thursday’s 1,042 million shares.