Tokyo stocks end slightly higher after rebound

Jiji Press TOKYO (Jiji Press) — Stocks ended slightly higher on the Tokyo Stock Exchange Wednesday, after staging a sharp rebound in tandem with U.S. equities.

The 225-issue Nikkei average rose 35.13 points, or 0.16 percent, to end at 21,645.37. On Tuesday, the key market gauge plummeted 1,071.84 points.

The TOPIX index of all first-section issues climbed 6.50 points, or 0.37 percent, to close at 1,749.91, after falling 80.33 points the previous day.

Tokyo stocks attracted hefty buybacks from the outset of Wednesday’s trading, pushing up the Nikkei average by more than 740 points by midmorning.

Investors took heart from the Dow Jones industrial average’s surge of 567.02 points, or 2.32 percent, to end at 24,912.77 on the New York Stock Exchange on Tuesday, brokers said. The key U.S. market gauge incurred its worst single-day point loss ever the previous day.

However, the Tokyo market saw its top side turn heavy later in the morning and headed south in the afternoon.

Investors were disappointed at the market’s failure to rise further amid the emergence of selling on a rally, market sources said, adding stocks bowed to futures-led selling in the afternoon.

The Tokyo market lost steam as concerns swelled over drops in New York futures prices in after-hours trading leading to another tumble on Wall Street, brokers said.

Investor sentiment was dampened by other Asian markets’ weakness, said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management Co.

“Given the market’s high volatility, players have been sensitive to signs of price contraction,” Yutaka Miura, senior technical analyst at Mizuho Securities Co. said, suggesting that investors stepped up selling anticipating a market sell-off.

Miura also pointed out that active buying was held in check toward the day’s closing due to the yen’s appreciation against the dollar.

Winners outnumbered losers 1,165 to 821 in the TSE’s first section, while 79 issues were unchanged.

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