Tokyo stocks rebound on buybacks

Yomiuri Shimbun file photo
Tokyo Stock Exchange

TOKYO (Jiji Press) — Tokyo stocks snapped their five-session losing streak Thursday thanks to buybacks.

The Nikkei Average of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section gained 120.15 points, or 0.46%, to finish at 26,507.87, after falling 180.31 points Wednesday.

The broader TOPIX index rose 14.85 points, or 0.78%, to 1,908.17, following a 12.27-point loss the previous day.

Buying outpaced selling from the outset, after all three key U.S. stock indexes extended gains Wednesday.

Investors particularly bought back shares whose prices fell to reasonable levels in the five-session slump, including Tuesday’s sell-off caused by the Bank of Japan’s effective interest rate hike, brokers said.

“The market has finally priced in the BOJ’s totally unexpected action,” said Kazuo Kamitani, strategist at Nomura Securities Co.

Sentiment was also brightened by rallies in the Hong Kong and other Asian markets.

Masayuki Otani, chief market analyst at Securities Japan Inc., pointed out that “the rebound was limited” amid lingering recession fears. Otani also said, “The market struggled for direction amid a dearth of participants during the Christmas holidays.”

On the Prime section, gainers outnumbered decliners 1,431 to 337 while 70 issues were flat. Volume shrank to 1,150 million shares from Wednesday’s 1,779 million shares.

Tatsuta Electric Wire and Cable shot up 19.32% after announcing Wednesday a planned tender offer by a subsidiary of oil wholesaler Eneos.

Realtors Mitsui Fudosan and Mitsubishi Estate staged powerful rebounds by 4.3% and 3.36%, respectively.

The yen’s slower appreciation helped buoy export-oriented names including automaker Suzuki, up 3.04%.

Resources developer Inpex advanced 2.49% on rising crude oil prices.

On the other hand, groupware developer Cybozu tumbled 7.92% after surging the previous day.

Other major losers included insurer Tokio Marine Holdings.