TOKYO: Stocks turned slightly higher on the Tokyo Stock Exchange on Monday as the yen lost some of its early strength. The 225-issue Nikkei average gained 16.46 points, or 0.09 percent, to close at 19,251.08. On Friday, the key market gauge lost 112.91 points. The Topix index of all first-section issues finished up 2.47 points, or 0.16 percent, at 1,547.01 after losing 6.53 points the previous trading day. Both indexes rose for the first time in three market days. The Nikkei average opened on a weak note reflecting the dollar’s fall below ¥113.
The Japanese currency attracted safe-haven purchases, on the back of growing concerns over the upcoming French presidential election and because the administration of U.S. President Donald Trump faces difficulties appointing key officials, brokers said. After losing about 120 points soon after the opening, the Nikkei gradually trimmed its loss toward the end of the morning session. But the key market gauge started the afternoon session with a modest gain and moved in positive territory for most of the rest of the day, with investors heartened to see the greenback rise back above the ¥113 line, market sources said. The market’s downside was also supported by expectations for the Bank of Japan’s purchases of exchange-traded funds, said Masashi Itoga of Mito Securities Co.’s Investment Information Department. “However, investors took a wait-and-see stance generally” ahead of Trump’s congressional address scheduled for Feb. 28, he added. A major securities firm official said that players found it difficult to step up purchases before the closely watched event. “If Trump’s speech fails to meet market expectations, the yen would inevitably rise and stocks would surely fall,” a bank-affiliated securities firm official said.
U.S. equities showed strong performances late last week, with all three major indexes —the Dow Jones industrial average, the S&P 500 index and the tech-heavy Nasdaq composite index —rewriting their record highs on Friday. Still, they failed to provide a big boost to the Tokyo market. Investors are afraid that U.S. stocks will likely be hit by selling soon following their recent rapid advances, one market source said. “The Tokyo market is expected to remain susceptible to dollar-yen moves for the time being,” Mito Securities’ Itoga said.
Rising issues outnumbered falling ones 1,057 to 783 on the TSE’s first section, while 162 issues were unchanged. Volume decreased to 1.497 billion shares from Friday’s 2.029 billion shares. Tire-maker Bridgestone surged after announcing on Friday a decision to buy back some of its own shares. Automakers Toyota and Fuji Heavy, electronic parts-makers Alps Electric and Murata Manufacturing, and air conditioner producer Daikin were buoyant. Struggling electronics and machinery-maker Toshiba rebounded for the first time in five market days. Other major winners included mobile phone carrier SoftBank Group and mega-bank group Mitsubishi UFJ. By contrast, industrial robot-maker Fanuc, clothing store chain operator Fast Retailing and game maker Nintendo met with selling. In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average was up 50 points at 19,250.
