UPDATE1: Tokyo stocks bounce back after Nikkei's biggest drop this year

Japan Economic Newswire |

Tokyo stocks rebounded Thursday as market players sought bargains after the Nikkei index posted the year's largest decline the previous day.

The 225-issue Nikkei Stock Average ended up 320.99 points, or 1.45 percent, from Wednesday at 22,498.03. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 20.83 points, or 1.18 percent, higher at 1,786.25.

Gainers were led by construction, metal product and electric appliance issues.

Shares staged a solid rebound after the Nikkei index lost nearly 3 percent in a three-day losing streak, including its biggest one-day decline of the year on Wednesday.

"The market was pushed up by bargain-hunting by overseas investors and purchases by domestic institutional investors, who lagged behind in a recent round of buying," said Chihiro Ota, general manager of investment research at SMBC Nikko Securities Inc.

Technology issues, which had been pressured by a sell-off of U.S. counterparts in recent weeks, led gains after the tech-heavy Nasdaq Composite Index recovered Wednesday.

The rebound of high-tech issues improved investor sentiment, said Yutaka Miura, a senior technical analyst at Mizuho Securities Co.

But Miura also pointed to uncertainties including the Middle East situation following the United States' recognition of Jerusalem as the capital of Israel, the probe into Russia's alleged meddling in the 2016 U.S. presidential election and a potential U.S. government shutdown if lawmakers fail to meet a Friday deadline for a spending bill to fund the government.

"A wait-and-see mood also prevailed ahead of the release of U.S. November jobs data on Friday," he added.

On the First Section, advancing issues outnumbered decliners 1,716 to 269, with 60 ending the day unchanged.

Among technology shares, Tokyo Electron expanded gains, rising 980 yen, or 4.9 percent, to 21,020 yen and silicon wafer maker Sumco climbed 127 yen, or 4.7 percent, to 2,808 yen.

Grilled chicken restaurant operator Torikizoku was up 190 yen, or 6.2 percent, to 3,255 yen, after the company said Wednesday its November sales rose over 5 percent from a year earlier.

Pigeon grew 195 yen, or 4.4 percent, to 4,615 yen, and Daio Paper rose 23 yen, or 1.6 percent, to 1,417 yen, after the Nikkei business daily said Thursday the companies will cooperate with internet giant Alibaba Group Holding to sell baby goods in China.

Sharp, which returned to the First Section of the Tokyo Stock Exchange on Thursday after being demoted due to its poor financial health last year, was down 80 yen, or 2.1 percent, at 3,805 yen.

Trading volume on the main section fell to 1,528.33 million shares from Wednesday's 1,791.74 million shares.


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