Investors bought on dips following a large fall over the past two trading sessions, with gains in blue chips, leading Tokyo stocks to end sharply higher on Tuesday.
According to brokers, investor sentiment lifted due to some Asian markets and U.S. stock futures, while blue-chip stocks – Fast Retailing and Tokyo Electron stocks were bought after sharp fall on Monday and last Friday.
Market summary –
• On Tuesday, the 225-issue Nikkei Stock Average ended up 579.78 points, or 2.08 percent.
• On the Tokyo Stock Exchange, the broader Topix index of all First Section issues finished 28.46 points, or 1.47 percent, higher at 1,969.79.
• Stocks issues gained in every industry category, led by securities house, marine transportation, and rubber product.
• Following an overnight rise in U.S. Treasury yields, the dollar traded firm in the upper 113 yen range.
• The dollar fetched 113.65-67 yen at 5 p.m. on Tuesday trading, compared with 113.57-67 yen in New York and 113.45-47 yen in Tokyo at 5 p.m. the previous day.
• In Tokyo late Monday afternoon, the euro was quoted at $1.1287-1289 and 128.28-32 yen against $1.1269-1279 and 128.16-26 yen in New York and $1.1254-1256 and 127.68-72 yen.
• With investors selling the safe-haven debt on higher U.S. Treasury yields and Tokyo shares, the yield on the benchmark 10-year Japanese government bond rose 0.015 percentage point compared to 0.050 percent from Monday’s close.
• After the Nikkei index finished below the 28,000 threshold on Monday, on Tuesday morning Tokyo stocks rebounded sharply and extended gains later in the day.
• The operator of the Uniqlo clothing chain, Fast Retailing stocks added 1,790 yen, or 2.7 percent, to 68,350 yen, while Tokyo Electron stocks rose 2,620 yen, or 4.4 percent, to 62,220 yen.
• Taiyo Yuden stocks climbed 190 yen, or 3.0 percent, to 6,490 yen and Advantest stocks were up 470 yen, or 4.6 percent, at 10,670 yen.
• Pharmaceutical company Shionogi stocks rose 409 yen, or 5.3 percent, to 8,121 yen.
• On the First Section, advancing issues outnumbered decliners 1,673 to 430, while 81 ended unchanged.
• Volume on the main section fell to 1,015.66 million shares from Monday’s 1,142.33 million shares.