Jiji Press TOKYO (Jiji Press) — Stocks bounced back on the Tokyo Stock Exchange on Monday thanks to the yen’s drop against the dollar.
The 225-issue Nikkei average gained 109.54 points, or 0.48 percent, to end at 22,804.04. On Friday, the key market gauge shed 128.76 points.
The TOPIX index of all First Section issues was up 5.40 points, or 0.30 percent, at 1,786.84, after falling 7.57 points the previous trading day.
After initial weakness, stocks were lifted by buying on dips in the morning, and accelerated their upswing in the afternoon on the yen’s slide against the dollar, market sources said.
“The yen’s drop prompted futures-led buybacks,” said Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc.
Ota indicated that stocks were not affected by a deepening divide on trade issues between U.S. President Donald Trump and the leaders of other Group of Seven major industrialized countries at their weekend summit in Canada.
The fissures over trade were “within expectations,” Ota said.
Yoshihiko Tabei, chief analyst at Naito Securities Co., said the G-7 summit “failed to offer major fresh selling incentives.”
Investors refrained from trading stocks vigorously, as they already have shifted their attention to a U.S.-North Korea summit on Tuesday as well as the U.S. Federal Reserve’s policy meeting set for Tuesday and Wednesday, brokers said.