Tokyo, Dec. 4 (Jiji Press)–Stocks rebounded on the Tokyo Stock Exchange Thursday, led by the strength of stock index futures, but the key Nikkei average was stuck in a tight range for most of theday amid a wait-and-see mood ahead of major U.S. events.
The 225-issue Nikkei average closed up 103.60 points at 10,429.99, after fluctuating around 10,400 throughout the afternoon session. On Wednesday, the average shed 83.76 points.
“The Nikkei’s rebound was led by buying of stock index futures apparently by speculative players among Asian hedge funds,” said Tatsuo Kurokawa, equity general manager at Japan Asia Securities Co.
The Nikkei failed to gain momentum, however, as market players retreated to the sidelines to await chip giant Intel Corp.’s mid- quarter update on business performance later in the day, Kurokawa said. Players are also focusing attention on U.S. jobs data for November for clues to the course of the U.S. economy.
The TOPIX index of all first-section issues was up 7.36 points at 1,023.43. It ended down 7.43 points the previous day.(MORE)Tokyo Stocks Rebound as Market Focuses on U.S. Events
Rising issues eclipsed losers 750 to 636 on the first section, while 146 issues ended flat.
Volume came to 1,337 million shares against Wednesday’s 1,503 million shares.
After opening slightly higher, the key market gauge gradually widened its gains to hit a high of 10,449.54 in midmorning. But it lost momentum after facing pressure around that level and hovered narrowly for the rest of the day.
“The market was underpinned by expectations that U.S. stocks may pick up following Intel’s report and jobs data,” said Yutaka Miura, equity manager at Shinko Securities Co. The jobs data are due out Friday.
Kenichi Hirano, equity general manager at Tachibana Securities Co., said the Nikkei average needs an additional support factor, such as stepped-up buying by foreign investors, to break through the 75-day moving average, which came to 10,487.12 as of Thursday.
Hirano noted that foreign hedge funds which failed to join the Nikkei’s steep rally earlier this year are expected to become net buyers in December in anticipation of Japanese stocks’ brisk performance next year.(MORE)Tokyo Stocks Rebound as Market Focuses on U.S. Events
Among technology issues, Canon posted solid gains following a Nihon Keizai report that the company will enter the flat television market with Toshiba under their existing partnership accord on a new technology called surface conduction on electron emitter display.
Toshiba, Advantest and Tokyo Electron also gained ground, but Sony and NEC fell.
Telecom carriers NTT, KDDI and NTT DoCoMo drew buying, as did automakers Toyota, Honda and Nissan.
Major banking groups Mizuho, Mitsubishi Tokyo and UFJ advanced but Sumitomo Mitsui ended flat.
Losers included information technology-related issues such as Softbank, Hikari Tsushin and Yahoo Japan.
Consumer finance company Takefuji continued to sink on a wave of selling sparked by the arrest of its founder and chairman Yasuo Takei on suspicions that he played a key role in a wiretapping case.
In index futures trading, the December contract on the Nikkei average ended up 100 points at 10,430 on the Osaka Securities Exchange.END
