News Column

Stocks Morning UPDTE1

January 20, 2014

TOKYO , Jan. 21 -- ( Kyodo ) _ (EDS: ADDING INFO) Tokyo stocks staged a strong rebound Tuesday morning as the yen's depreciation prompted investors to scoop up recent decliners. The 225-issue Nikkei Stock Average rose 230.94 points, or 1.48 percent, from Monday to 15,872.62, after falling over the past three trading days. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 9.54 points, or 0.74 percent, to 1,303.4. As the U.S. dollar climbed to the upper-104 yen level from around the 104 yen line seen the previous day, high-tech, automaker and other companies heavily dependent on exports attracted buying. Brokers said the market's underlying strength is based on investors' hope about announcements of a slew of Japanese companies' earnings reports for the October to December quarter later this month. "With the earnings report season to start soon in earnest, expectations about a further rise in share prices remain intact," said Toshikazu Horiuchi , equity strategist at IwaiCosmo Securities Co. "We want to see how well earnings figures will turn out, otherwise we will know at that time whether or not there will be further positive incentives," he added. Rebounds of some high-priced issues gave a large boost to the Nikkei in the morning. As the session's largest contributor to the index's gain, Fast Retailing surged 1,165 yen or 3.1 percent to 39,170 yen , snapping its three-day losing streak. TDK also gained 120 yen or 2.5 percent to 4,955 yen following its losses over the past two days. Among export-led issues, Toyota Motor advanced 106 yen or 1.7 percent to 6,312 yen while Honda Motor went up 28 yen or 0.7 percent to 4,184 yen . Sony and Hitachi also attracted buying. NEC rose 8 yen or 2.9 percent to 280 yen on news that the company plans to sell its Internet service provider subsidiary Biglobe to an investment fund for several tens of billions of yen. On the First Section, advancing issues outnumbered declining ones 1,048 to 588, while 140 finished the morning unchanged. By sector, real estate, precision machinery and rubber issues were notable gainers, while air transport, as well as oil and coal shares, faced selling.

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Source: Japan Economic Newswire

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