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Tokyo stocks bounce back on bargain-hunting, weaker yen

The Nikkei average of 225 selected issues listed on the first section of the Tokyo Stock Exchange rose 145.07 points, or 0.58 percent, to close at 25,307.85, after plunging 527.62 points Friday. (AFP)
The Nikkei average of 225 selected issues listed on the first section of the Tokyo Stock Exchange rose 145.07 points, or 0.58 percent, to close at 25,307.85, after plunging 527.62 points Friday. (AFP)
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14 Mar 2022 04:03:16 GMT9
14 Mar 2022 04:03:16 GMT9

TOKYO: Tokyo stocks rebounded Monday, thanks to bargain hunting following recent sell-offs and purchases inspired by a weaker yen.

The Nikkei average of 225 selected issues listed on the first section of the Tokyo Stock Exchange rose 145.07 points, or 0.58 percent, to close at 25,307.85, after plunging 527.62 points Friday.

The TOPIX index of all TSE first-section issues ended up 12.74 points, or 0.71 percent, at 1,812.28, in a turnaround from a 30.49-point drop the previous trading day.

A wide range of issues were on a firm note from the outset as investors rushed to hunt bargains following the market’s tumbles last week, during which the Nikkei lost over 800 points.

The yen’s weakening against the dollar prompted players to buy export-oriented stocks, including automakers, helping the Nikkei gain over 400 points at one point.

Although the initial buying spree tapered soon amid a dearth of fresh incentives, the market maintained its strength until the closing.

Hopes for progress in ceasefire negotiations between Ukraine and Russia, and a recent decrease in new COVID-19 cases in Japan also contributed to the rally, said Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc.

“Amid the absence of fresh market-moving news, players focused on selective buying of stocks whose prices had fallen to affordable levels,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

On the TSE first section, gainers outnumbered decliners 1,445 to 655 while 80 issues were unchanged. Volume decreased to 1,187 million shares from Friday’s 1,421 million shares.

Ya-Man soared 16.72 percent after the beauty devices maker on Friday announced rosier earnings estimates for the year to April 30.

Travel-related companies attracted buying after Japanese Prime Minister KISHIDA Fumio said Saturday that the government is set to make preparations for restarting its Go To Travel domestic tourism promotion campaign, which has been suspended due to the resurgence of the novel coronavirus.

Of them, travel agency H.I.S. jumped 7.53 percent, and railway operator JR West gained 4.83 percent. Japan Airlines and rival ANA Holdings were up 3.45 percent and 2.94 percent, respectively.

Among automakers, Mitsubishi Motors climbed 3.03 percent, and Toyota advanced 2.88 percent.

Semiconductor-related names, such as Advantest and Tokyo Electron, also enjoyed gains.

On the other hand, sushi restaurant chain Kura Sushi went down 3.06 percent to extend its losing streak to an eighth market day amid concerns over higher procurement costs for fishery products from Russia.

Obayashi and Shimizu fell 2.95 pct and 2.50 percent, respectively after Morgan Stanley MUFG Securities Co. lowered its investment ratings for the general contractors.

Other major losers included drugmaker Shionogi and retail giant Seven & i Holdings.

In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average fell 40 points to 25,050.

JIJI Press

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