Tokyo stocks rally on buybacks

Jiji Press TOKYO (Jiji Press) — Stocks rallied on the Tokyo Stock Exchange on Thursday, supported by buying on dips after the previous day’s sharp falls triggered by news of U.S. President Donald Trump’s imminent decision to recognize Jerusalem as Israel’s capital.

The 225-issue Nikkei average gained 320.99 points, or 1.45 percent, to close at 22,498.03. On Wednesday, the key market gauge plunged 445.34 points, the biggest single-day point loss since Nov. 9, 2016, when the Tokyo market came under heavy selling after then Republican candidate Trump’s victory in the U.S. presidential election.

The TOPIX index of all First-Section issues finished up 20.83 points, or 1.18 percent, at 1,786.25, after shedding 25.55 points the previous day.

Tokyo stocks attracted purchases on declines from the outset of Thursday’s trading after the latest tumble stemming from concerns over the Middle Eastern situation.

Investor worries were eased somewhat after Trump’s Jerusalem endorsement did not severely batter U.S. and European stocks overnight, brokers said.

Overseas markets “have digested” news on Jerusalem, an official of a bank-linked securities firm said.

The official noted that Tokyo stocks were brisk thanks to bargain hunting by domestic individual investors.

Stock prices bounced back due to “buybacks after they sagged too much” on Wednesday, said Hideyuki Suzuki, head of the investment market research department at SBI Securities Co.

The buybacks, apparently led by nonresidents, helped the market maintain firmness throughout Thursday, although some players sat on the fence ahead of the release on Friday of the U.S. government’s closely watched job data for November, Suzuki said.

Rising issues far outnumbered falling ones 1,716 to 269 in the TSE’s First Section, while 60 issues were unchanged.

Trading volume fell to 1,528 million shares from Wednesday’s 1,791 million shares.

Semiconductor-related Tokyo Electron and Sumco were buoyant after their U.S. peers fared well in New York on Wednesday.

Other major winners included parcel delivery service firm Yamato Holdings, cosmetics maker Shiseido and Hitachi Construction Machinery.


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