Tokyo stocks rise on brisk U.S. equities

0
32
Stocks rose Monday, supported by a continued rise on Wall Street late last week.

The Nikkei 225 average rose 53.26 points, or 0.26 percent, to end at 20,719.33, a level unseen since Dec. 19. On Friday, the key market yardstick jumped 263.80 points.

The Topix, which covers all first-section issues on the Tokyo Stock Exchange, closed 8.78 points, or 0.56 percent, higher at 1,566.37. It gained 14.39 points Friday.

The Nikkei gained over 220 points briefly on hefty purchases in early trading before being pressured by profit-taking, market sources said.

Hiroaki Kuramochi, chief market analyst at Saxo Bank Securities Ltd., said Monday’s rise came as U.S. equities continued to gain Friday on hope for progress in U.S.-China trade talks.

But the Tokyo market’s topside grew heavy in the morning after Bloomberg reported that the United States and China were making little progress in their trade negotiations on intellectual property protection, Kuramochi pointed out.

The market met with “selling of export-oriented names and futures-linked selling” following a pause in the yen’s weakening against the dollar traced to the news report, he said.

“Selling emerged after the Nikkei approached 21,000,” said Yoshihiko Tabei, chief analyst at Naito Securities Co.

Tabei suggested that the Nikkei would unlikely to rise above the threshold until players see the results of the Bank of Japan’s two-day monetary policy meeting that ends Wednesday and two days of ministerial trade talks between Washington and Beijing that start Jan. 30.

Rising issues outnumbered falling ones 1,432 to 633 in the first section, while 63 issues were nchanged.

Volume edged down to 1.127 billion shares from 1.150 billion Friday.

Tokyo Tatemono ended 6.12 percent higher after the real estate company announced on Friday a share buyback plan.

Higher crude oil prices lifted oil companies JXTG, Idemitsu, Showa Shell and Cosmo Energy.

Also on the plus side were semiconductor manufacturing equipment maker Tokyo Electron and Takeda Pharmaceutical.

By contrast, clothing retailer Fast Retailing, air conditioner manufacturer Daikin and daily goods producer Kao were downbeat.

LEAVE A REPLY

Please enter your comment!
Please enter your name here