Tokyo stocks rebounded on Friday, helped by speculation about increased purchases of exchange-traded funds by the Bank of Japan.
The Nikkei average of 225 selected issues listed on the first section of the Tokyo Stock Exchange gained 152.73 points, or 0.79%, to finish at 19,498.50. Thursday, the market gauge fell slightly by 7.47 points.
The Topix index of all first section issues of the TSE rose 13.06 points, or 0.92%, to 1,430.04, after losing 8.49 points the day before.
Tokyo stocks rallied in the afternoon, as their morning drop raised hopes that the BOJ will increase ETF purchases, the brokers said.
But the market was heavy due to the sale to lock in profits and fears of a sharp increase in Japanese coronavirus cases over the weekend. The lack of active purchases from foreign investors during the overseas Easter holidays also caps the Tokyo market, they said.
“Some investors stayed on the sidelines to see Yaskawa Electric results expected later Friday,” said Hirohumi Yamamoto, strategist at Toyo Securities Co.
The income of the industrial robot producer for the year to February is widely regarded as a touchstone for the business performance of Japanese companies closing their accounts in March.
Some market sources attributed the day’s hike to a sense of relief that spread among investors after the US Federal Reserve announced Thursday $ 2.3 trillion in aid to affected businesses and governments by the coronavirus epidemic.
“While vigilance over the virus crisis remains, the improving investment climate in the United States has helped change sentiment here for the better,” said a senior house manager at Japanese brokerage.
More emissions were more numerous than those from 1,511 to 608 in the first section of the TSE, while 50 emissions were unchanged.
Volume increased to 1.370 billion shares from 1.368 billion shares on Thursday, in part due to purchases and sales linked to Friday’s special pricing to settle April’s option contracts.
The mega-banks Mitsubishi UFJ, Mizuho and Sumitomo Mitsui attracted purchases after American financiers behaved overnight thanks to the new Fed loan program.
Fast Retailing clothing store chain increased as investors were relieved that the company’s downgrade to Thursday’s projection of consolidated operating profit for the year to August not much worse than expected.
Other winners included technology investor SoftBank Group and mobile operator KDDI.
On the other hand, oil problems have encountered sales, investors disappointed by a reduction of 10 million barrels per day in crude oil production agreed on Thursday during an emergency teleconference of the countries called “OPEC more Declaring that the reduction was not drastic enough.
Car maker Toyota and retail giant Aeon were also negative.
In index futures trading on the Osaka Stock Exchange, Nikkei’s key June contract fell 180 points to end at 19,310.