Tokyo, Aug. 19 (Jiji Press)–Stocks rose sharply on the Tokyo Stock Exchange Tuesday, as foreign investors accelerated buying following the Dow Jones industrial average’s surge to a fresh 14- monthhigh overnight.
The key Nikkei average hit a high of 10,241.94 in the morning, climbing above 10,200 for the first time since July 23, 2002, in line with large-lot buying of stock index futures by foreign hedge funds.
However, the key market gauge was stuck in a tight range in the afternoon. “The Nikkei’s topside proved heavy at around 10,200 as indicated in an increase in outstanding limit sell orders,” said Shinobu Ikari, equity general manager at Tokai Tokyo Securities Co.
At the end of the day, the 225-issue Nikkei average stood 141.13 points, or 1.4 pct, higher from Monday at 10,174.10. The average climbed 169.50 points on Monday.
The TOPIX index of all first-section issues finished up 14.64 points, 1.5 pct, at 990.64. It was up 11.22 points on Monday.(MORE)ADD:
Advancing issues led losers 964 to 459 on the first section, while 102 issues ended flat.
Turnover increased to 1,908 million shares from Monday’s 1,437 million shares. In terms of value, it swelled to 1,331 billion yen from 941 billion yen, topping one trillion yen for the first time since July 24.
“The Nikkei’s further upward march after its milestone finish above 10,000 the previous day came against the backdrop of global uptrend of stock markets,” said Nagayuki Yamagishi, senior equity manager at UFJ Tsubasa Securities Co.
Foreign brokerage houses showed large-lot net buying in pre- opening order placement after Wall Street enjoyed hefty gains amid expectations for U.S. economic recovery, brokers said.
Fumiyuki Nakanishi, equity strategist at SMBC Friend Securities Co., said foreign investors moved to bolster buying of index futures in anticipation of strong U.S. economic growth. The country’s gross domestic product could grow a real 4 pct in the presidential election year of 2004, prompting those investors to select Japanese blue-chip stocks, he said.
Market heavyweights took a center stage in the day’s rally. While banking issues continued to attract active buying, high-tech powerhouses like Toshiba and Hitachi also advanced in heavy trade, brokers said.
Kazuhiro Takahashi, equity general manager at Daiwa Securities SMBC Co., said the Nikkei is likely to encounter a cap at around 10,500-10,600 in the short-term, at which a sense of overheating is expected to emerge.(MORE)THIRD:
Among Japan’s Big Four banks, UFJ rewrote its year-to-date high, while Mizuho, Mitsubishi Tokyo and Sumitomo Mitsui also surged on large-lot buying by nonresidents.
High-techs widely attracted buying, with Advantest, Mitsubishi Electric and TDK rewriting their year-to-date highs.
Also upbeat were telecom carriers like NTT DoCoMo, NTT and KDDI.
Real estate developers were robust. Mitsui Fudosan, Mitsubishi Estate, Tokyu Land and Sumitomo Realty & Development hit fresh year- to-date highs.
Bucking the broad market’s bull run, drug makers such as Yamanouchi, Daiichi and Takeda ceded ground.
Major soy sauce maker Kikkoman faltered following a downward revision of its earnings prospect for the current business year announced Monday.
Glass bottle manufacturer Nihon Yamamura Glass fell sharply, apparently reflecting a downward revision of its earnings outlook for April-September.
In index futures trading, the key September contract on the Nikkei average ended up 210 points at 10,240 on the Osaka Securities Exchange.
