Tokyo stocks rise further on U.S. climb and trade hopes
The 225-issue Nikkei average on the Tokyo Stock Exchange advanced 110.70 points, or 0.47 percent, to end at 23,850.57. On Thursday, the key market gauge jumped 535.11 points.
The Topix index of all TSE first section issues closed up 6.11 points, or 0.35 percent, at 1,735.16 after climbing 27.65 points the previous day.
The Tokyo market opened higher, cheering all-time highs scored by all three major U.S. stock indexes Thursday and a weaker yen following receding concerns over the U.S.-Iran tensions and increasing optimism on the trade front, brokers said.
China’s Commerce Ministry said Thursday that Liu He, the country’s vice premier and top trade negotiator, will visit the United States from Monday to sign the so-called phase one trade deal between the two countries.
The market came under pressure from profit-taking and a fall in clothing store chain Fast Retailing Co. in the morning.
In the afternoon, the two Japanese indexes fluctuated slightly above Thursday’s closing levels, as investors retreated to the sidelines to wait for the release of U.S. employment data later Friday, they added.
“The Nikkei’s climb on Friday was not as large as the day before as the market had already factored in the easing of the Middle East tensions, a main driver behind the U.S. stocks’ advance on Thursday,” said Maki Sawada, vice president of Nomura Securities Co.’s Investment Research & Investor Services Department.
“Fast Retailing pushed the Nikkei down by around 70 points” temporarily, Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co., said.
On the market’s narrow movements in the afternoon, Hirohumi Yamamoto, strategist at Toyo Securities Co., said, “Market players had no reason to actively sell stocks.”
“They were also reluctant to make active purchases before the three-day weekend in Japan,” he added.
On the TSE’s first section, falling issues slightly outnumbered rising ones 1,076 to 977, while 107 issues were unchanged. Volume dropped to 1.091 billion shares from 1.146 billion shares Thursday.
Retail group Seven & I Holdings Co. climbed 3.70 percent after announcing a 4.9 percent rise in its consolidated operating profit for March-November 2019.
Shimachu Co. surged 10.84 percent thanks to the furniture retailer’s share buyback plan.
Among other major winners were industrial robot producer Yaskawa Electric Corp. and parcel delivery service group SG Holdings Co.
On the other hand, Fast Retailing sank 2.78 percent as the company’s downward revision to its operating profit outlook for the year to August disappointed market players.
Also sold were security firm Secom Co. and power supplier Chubu Electric Power Co.
In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average added 100 points to end at 23,800.