Tokyo stocks rebound on bargain-hunting, upbeat earnings-Xinhua

Tokyo stocks rebound on bargain-hunting, upbeat earnings

Source: Xinhua

Editor: huaxia

2022-05-13 17:57:16

TOKYO, May 13 (Xinhua) -- Tokyo stocks bounced back Friday, as investors went on a bargain-hunting campaign to scoop-up cheap shares following the Nikkei's hefty slump a day earlier, while upbeat earnings from Japanese firms also buoyed the market.

The 225-issue Nikkei Stock Average gained 678.93 points, or 2.64 percent, from Thursday to close the day at 26,427.65.

The broader Topix index, meanwhile, added 35.02 points, or 1.91 percent, to close at 1,864.20.

Dealers here said that investors sought out issues early on that have taken a battering following the market's recent slump, with some blue-chip issues finding favor early on.

They added that a comparatively weak yen versus the U.S. dollar also helped underpin an upbeat market mood.

"Stocks rebounded in the short term as the market had been on a recent downward trend. The yen's weakening was also a supporting factor," Yutaka Miura, senior technical analyst at Mizuho Securities Co., was quoted as saying.

An air of circumspection remained, however, capping the market's upside, amid ongoing concerns that recent inflation figures in the U.S. would prompt the U.S. Federal Reserve to continue with its aggressive monetary tightening policy.

This, in stark contrast to the Bank of Japan, which believes the same global inflationary pressure is only temporary and has signaled on multiple occasions of late it will continue with its ultra-loose monetary policy, despite a widening gulf in policies between Japan and the U.S., strategists here highlighted.

By the close of play, oil and coal product, precision instrument and electric appliance issues comprised those that gained the most, and issues that rose outpaced those that fell by 1,557 to 259 on the Prime Market, while 21 ended the day unchanged.

Heavily-weighted component Tokyo Electron helped lift the broader market, jumping 5.5 percent, following the chip equipment maker announcing a record net profit for fiscal 2021 and expectations for growth in the current business year.

Fellow heavyweight SoftBank Group recouped losses from a day earlier, soaring 12.2 percent, as investors bought back the conglomerate's issues at a relatively cheap valuation, spurred on by SoftBank Group saying it will continue with its share buyback scheme.

NTT Data lost ground, however, slumping 7.6 percent, after announcing a drop in its net profit for fiscal 2022.

Nissan Motor also bucked the upward trend, reversing 2.9 percent, after its operating profit for this fiscal year missed median analysts' expectations.

On the Prime Market on Friday, 1,648.18 million shares changed hands, rising from Thursday's volume of 1,481.01 million shares.

The turnover on the final trading day of the week came to 3,592.30 billion yen (27.86 billion U.S. dollars).