Tokyo, Nov. 7 (Jiji Press)–Stocks wiped out their earlier losses and finished higher on the Tokyo Stock Exchange Friday, with the benchmark Nikkei average posting the first rise in three sessions.
But the market lacked a clear direction as a whole, with players gradually retreating to the sidelines ahead of key events toward the weekend, brokers said.
“Investors refrained from making active moves ahead of Japan’s general election Sunday although they appear to have discounted the three-way ruling coalition’s victory,” said Takayuki Suezaki, equity general manager at Nippon Global Securities.
The 225-issue Nikkei average ended up 76.68 points from Thursday at 10,628.98. On Thursday, it dropped 285.24 points.
The TOPIX index of all first-section issues was up 9.58 points at 1,045.15. It ended 27.74 points lower on Thursday.(MORE)Tokyo Stocks End Higher, Nikkei Logs 1st Rise in 3 Days
Gainers trounced decliners 763 to 630 on the first section, while 134 issues ended flat.
Volume shrank to 1,028 million shares from Thursday’s 1,314 million shares.
After getting off to a solid start partly thanks to the yen’s retreat past 110 to the dollar, the Nikkei average turned lower on profit taking.
But it surfaced back on to the plus side in the afternoon session, supported by buybacks and purchases on dips by players who were heartened to see the Nikkei avoid a steep decline, brokers said.
Some market sources said the afternoon rebound was caused by massive buying by domestic institutional investors.
But nonresidents such as hedge funds were seen selling Japanese shares ahead of their coming book closings. Foreign players’ selling is thus expected to continue next week, said Masatoshi Sato, senior strategist at Mizuho Investors Securities Co.
Players are closely awaiting U.S. employment data for October, to be released later in the day. Tsuyoshi Segawa, equity strategist at Shinko Securities Co. pointed out that market players seem to be expecting favorable nonfarm payroll figures in the statistics.(MORE)Tokyo Stocks End Higher, Nikkei Logs 1st Rise in 3 Days
Technology names like Tokyo Electron, TDK, Sony, Toshiba and NEC advanced.
Telecom carriers NTT, NTT DoCoMo and Japan Telecom gained ground, together with Internet business investor Softbank.
Of the Big Four banking groups, Mizuho, Mitsubishi Tokyo and UFJ gained ground. But Sumitomo Mitsui sagged.
Steelmakers like Nippon Steel and Kobe Steel surrendered ground.
Electronic components maker Alps Electric fell sharply as investors were disappointed at its sluggish April-September earnings.
In index futures trading, the December contract on the Nikkei average finished up 130 points at 10,640 on the Osaka Securities Exchange.END
