Tokyo Stocks Erase Losses to Rise for 2nd Straight Sessions

Jiji Press

17:10 JST, August 7, 2023

TOKYO (Jiji Press) — Tokyo stocks wiped out their early losses to mark a rise for the second straight session Monday, with investors stepping up buying the dip.

The Nikkei average of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section rose 61.81 points, or 0.19%, to finish at 32,254.56.

The broader TOPIX index ended 9.30 points, or 0.41%, higher at 2,283.93.

The market got off to a weak start after all three major U.S. price gauges continued to drop Friday. Sentiment was also dampened by the yen’s advance against the dollar over the weekend.

The Nikkei average lost about 360 points in the first minute, battered by selling of heavily weighted semiconductor-related components stemming from the chip sector’s dismal earnings in April-June, according to Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc.

After the initial wave of selling, however, both the Nikkei and TOPIX indexes started erasing losses.

“The Nikkei’s fall past 32,000 prompted participants to buy the dip,” Ota said.

“A halt in the yen’s appreciation also brightened sentiment,” another market source said.

In the afternoon, trading became lackluster amid a lack of fresh market-moving news.