Tokyo, Aug. 29 (Jiji Press)–Stocks rebounded from two consecutive days of drop on the Tokyo Stock Exchange Friday morning, supported by better-than-expected industrial production data for Julyreleased shortly before the opening.
Japan’s industrial production in July rose 0.5 pct from the previous month, against an average estimate of a 0.1 pct dip by 12 research institutes surveyed by Jiji Press.
“The growth in industrial production, together with U.S. stocks’ firmness overnight, prompted broad buying from the outset,” said Kenichi Azuma, strategist at Cosmo Securities Co.
At the morning close, the 225-issue Nikkei average stood up 70.52 points from Thursday at 10,295.74. It lost 83.77 points on Thursday.
The TOPIX index of all first-section issues was up 5.20 points at 998.71. It fell 7.16 points the previous day.(MORE)ADD:
Gainers outpaced losers 974 to 372 on the first section in the morning, while 169 issues were flat.
Half-day volume came to 666 million shares.
Helped by the brisk production data and U.S. stocks’ rise amid thin trading ahead of the Labor Day holiday weekend, the key Nikkei average rose about 115 points shortly after the opening.
With the technology-laden Nasdaq composite index closing above the 1,800 line for the first time since April 18, 2002, a broad range of tech heavyweights attracted buying from brokerage house dealers and individual investors, brokers said.
But the Nikkei average’s topside gradually became heavy due to large-lot selling aimed at locking in profits apparently from foreign hedge funds, brokers said.
Hiroichi Nishi, equity general manager at Nikko Cordial Securities Inc., said, “Technical signals of the market’s overheating have gradually been easing.”
But investors had difficulty in actively titling positions before the weekend, which also marks the end of the month, Nishi said.(MORE)THIRD:
Among technology issues, Advantest, Tokyo Electron and TDK soared to their fresh year-to-date highs. Consumer electronics makers like Toshiba, Hitachi and NEC also enjoyed gains.
Also upbeat were consumer credit companies like Acom and Promise.
In contrast, steelmakers remained under profit-taking pressure, including Nippon Steel and JFE.
The banking sector was mixed. Mizuho and Mitsubishi Tokyo posted losses, while Sumitomo Mitsui and Resona Holdings gained ground.
