Tokyo stocks turn higher on buybacks
Tokyo stocks staged a mild rebound Tuesday thanks to buybacks following a plunge the day before.
The Nikkei 225 average rose 112.65 points, or 0.49 percent, to end at 23,084.59, after falling 233.24 points Monday.
The Topix, which covers all issues on the first section of the Tokyo Stock Exchange, finished 11.58 points, or 0.69 percent, higher at 1,684.24. It lost 11.78 points the previous day.
The TSE got off to a poor start despite a Wall Street rally Monday, as sentiment remained weak amid persistent concerns over the coronavirus outbreak spreading further.
But buybacks gradually gathered momentum after the initial drop and pushed both indexes back into positive territory around midmorning, brokers said.
“Before the Chinese markets’ opening, investors refrained from active buying in view of U.S. shares paring gains on late selling,” said Hiroaki Kuramochi, chief market analyst at Capital Partners Securities Co. “But after confirming solid performance of Shanghai and Hong Kong stocks, they moved to cover short positions.”
The Chinese central bank’s massive liquidity injection to stabilize the economy helped ease market worry about a possible global slowdown caused by the spread of the coronavirus outbreak, another market source pointed out.
On the TSE’s first section, rising issues outnumbered falling ones 1,703 to 386 while 70 issues were unchanged. Volume decreased to 1.276 billion shares from 1.357 billion Monday.
Domestic demand-led stocks, such as paper mills, financials and pharmaceuticals, attracted buybacks.
Technology firms Panasonic and Murata Manufacturing were hunted after releasing better than expected earnings reports.
Among other winners were cosmetics maker Shiseido and clothing store chain Fast Retailing.
By contrast, machinery makers, including Komatsu and Hitachi Construction Machinery, suffered losses.
Resources developer Japex extended its losing streak to a seventh session.
Also on the negative side were industrial robot producer Fanuc and mobile phone carrier KDDI.