Tokyo stocks close higher

7 June, 2020 12:00 AM printer

TOKYO: Tokyo stocks bounced back Friday to close higher for a fifth straight day, as investors bought back issues oversold in earlier trade on hopes for a global economic recovery.

The 225-issue Nikkei Stock Average gained 167.99 points, or 0.74 percent, from Thursday to close the day at 22,863.73, reports Xinhua.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 8.66 points, or 0.54 percent, to finish at 1,612.48.

Sharp gains made in the afternoon saw earlier losses recouped following a round of profit-taking on concerns the market may be overheating following its recent run of closing highs, local brokers said.

But buying momentum gathered pace again on increased confidence that various countries' virus-linked easing and stimulus measures were concrete steps towards global economic recovery, they added.

"Optimism stemming from the lifting of virus-induced lockdowns, and economic stimulus measures in Japan and other countries overwhelmed lingering concern that shares had been overvalued," Yutaka Miura, senior technical analyst at Mizuho Securities Co., was quoted as saying.

In terms of recent stimulus measures, the European Central Bank announcing overnight it would almost double its asset purchases under its emergency coronavirus program, helped support an optimistic mood, analysts here said.

U.S. employment data for May due out later in the day likely to show the jobless rate as a result of the pandemic in the world's largest economy has dropped to historically low levels, has largely been factored in, they added, with the yen-dollar pairing more telling.

Punctuating a belief in the global economic revival, the U.S. dollar remained firm against the yen and was quoted at 109.37-38 yen at 5 p.m., compared with 109.09-19 yen in New York and 109.06-08 yen at 5 p.m. on Thursday in Tokyo.

The euro, meanwhile, fetched 1.1349-1350 dollars and 124.13-17 yen against 1.1331-1341 dollars and 123.68-78 yen in New York, and 1.1200-1202 dollars and 122.15-19 yen in late Thursday afternoon trade in Tokyo.

The yen's relative weakness against the U.S. dollar helped lift exporter issues reliant on a weaker yen to boost competitiveness abroad and profits when they are repatriated from overseas, brokers here highlighted.

They added that a weaker yen usually has a positive bearing on the wider market, as well.

Exporters finding favor included automakers, with Nissan accelerating 4.8 percent, while Mazda climbed 5.9 percent. Honda, meanwhile, ended the day 3.8 percent higher.

Following their U.S. peers higher overnight, airline issues soared, with ANA Holdings jumping 7.1 percent, while Japan Airlines surged 9.7 percent.

By the close of play, air transportation, iron and steel, and marine transportation issues comprised those that gained the most, and issues that rose outpaced those that fell by 1,154 to 943 on the First Section, while 72 ended the day unchanged.