TOKYO: Stocks staged a rebound on the Tokyo Stock Exchange Thursday, helped by buybacks after the previous day’s tumble.
The 225-issue Nikkei average climbed 90.28 points, or 0.44 percent, to end at 20,683.95. On Wednesday, the key market gauge plunged 248.30 points.
The Topix index of all first-section issues grew 9.51 points, or 0.57 percent, to close at 1,664.88, after falling 18.51 points the previous day.
Despite an overnight fall in U.S. equities, the Tokyo market opened higher thanks to repurchases. After the initial buying ran its course, however, selling on a rally and profit-taking put some drag on the market, brokers said.
The key indexes held firm in the afternoon, but their upside was heavy as investors refrained from stepping up purchases amid a sense of caution after the recent bull run, the brokers also said.
Hopes for brisk April-June earnings reports from major Japanese companies underpinned stock prices, according to the brokers.
Investors also took heart from the weaker yen against the dollar and solid Shanghai shares, the brokers added.
The Nikkei average bounced back, but investors were not in a mood to buy stocks aggressively, an official at a midsize brokerage firm said.
Active buying was held in check as market participants want to see the results of the U.S. Federal Reserve’s Federal Open Market Committee meeting next week as well as upcoming domestic corporate earnings, said Hideyuki Suzuki, head of the investment market research department at SBI Securities Co.
