Nikkei ends above 24,000 for first time in a month
Tokyo stocks climbed for the third consecutive session Tuesday thanks to an advance on Wall Street and the yen dropping against the dollar.
The Nikkei 225 average jumped 174.60 points, or 0.73 percent, to end at 24,025.17 after gaining 110.70 points Friday. The Nikkei last ended above the psychologically important threshold Dec. 13.
The Topix, which covers all first-section issues on the Tokyo Stock Exchange, closed 5.37 points, or 0.31 percent, higher at 1,740.53 following a 6.11-point rise Friday.
Reassured by U.S. equities turning higher Monday and the dollar topping ¥110 for the first time in around eight months, investors rushed to buy from the outset of the first session after the three-day weekend, brokers said. Monday was Coming of Age Day.
Risk appetite increased after the United States removed China from its currency manipulator list on Monday, just two days before the two nations were scheduled to sign a “phase one” trade deal. No escalation of the U.S.-Iran tensions also made players feel comfortable buying stocks, they said.
After the early morning surge, the market came under profit-taking pressure. But the Nikkei managed to stay above the 24,000 line for most of the remaining session underpinned by the strength of Fast Retailing and SoftBank Group, both heavily weighted components of the index.
“The two components alone pushed up the Nikkei by around 100 points in the morning,” said Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc.
“Profit-taking pressure built up as the Nikkei recovered 24,000,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co.
He also pointed out that the market’s upside was limited by persistent uncertainty over how the United States will handle tariffs on Chinese products.
On the first section, falling issues outnumbered risers 1,216 to 860 despite rises in the market indicators, while 83 issues were unchanged. Volume rose to 1.234 billion shares from 1.091 billion Friday.
Clothing store chain Fast Retailing surged 2.18 percent and technology investor SoftBank Group 3.51 percent.
Automaker Toyota, technology and entertainment titan Sony and other export-oriented issues attracted buying due to the yen’s fall against the dollar.
Chip stocks, such as Tokyo Electron and Shin-Etsu Chemical, went up in the wake of a rise in the U.S. SOX Philadelphia semiconductor index Monday.
Among other major winners were steel mill JFE Holdings and realtor Nomura Real Estate Development.
On the other hand, retailer Ryohin Keikaku tumbled 19.03 percent on its profit warning for the business year through February.
Gyudon restaurant chain Yoshinoya Holdings fell 9.55 percent for its failure to beat a market estimate on operating profit for the year ending February.