Tokyo Stocks Rebound after Last Week’s Sell-Off

Jiji Press

17:26 JST, August 21, 2023

TOKYO (Jiji Press) — Tokyo stocks turned higher Monday on buying coming in reaction to last week’s sell-off, while trading was slow.

The Nikkei average of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section rose 114.88 points, or 0.37%, to finish at 31,565.64.

The broader TOPIX index ended 4.20 points, or 0.19%, higher at 2,241.49.

Both indexes rose for the first time in four market days.

The market staged a technical rally from the outset after the Nikkei shed over 750 points in the three-day losing streak through Friday, but later moved without a clear direction amid a dearth of fresh trading factors, brokers said.

Its upside was limited by factors such as continued worries over an economic slowdown in China, Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co., noted.

“Investors avoided active trading ahead of an economic symposium in Jackson Hole, Wyoming, later this week,” said Maki Sawada, strategist at Nomura Securities Co. “They are especially waiting for a speech by U.S. Federal Reserve Chairman Jerome Powell on Friday at the event amid persistent concerns about the possibility of the Fed continuing to raise interest rates.”

TEPCO climbed 4.15% on expectations for progress on its plan to release into the sea treated water from its disaster-crippled Fukushima No. 1 nuclear power plant.