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Tokyo stocks jump in morning on buybacks following selloff

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    Kyodo News

Tokyo, Japan   /   Mon, March 1, 2021   /   11:04 am
Tokyo stocks jump in morning on buybacks following selloff A man stands in front of an electronic board showing Japan’s Nikkei average outside a brokerage firm in Tokyo on Thursday. The Nikkei closed at its lowest in nearly seven months on Thursday with chip-related stocks suffering after a rout in tech stocks inflicted the largest daily decline on Wall Street since 2011. (-/Kim Kyung-Hoon)

Tokyo stocks gained sharply Monday morning as investors bought back shares such as chip and electronics issues following the benchmark Nikkei's biggest daily point drop since June 2016 late last week.

The 225-issue Nikkei Stock Average rose 655.25 points, or 2.26 percent, from Friday to 29,621.26. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 31.82 points, or 1.71 percent, at 1,896.31.

Gainers were led by machinery, electric appliance, and information and communication issues.

The US dollar was firm in the mid-106 yen range on growing hopes for a recovery in the US economy after the House of Representatives passed President Joe Biden's $1.9 trillion stimulus package, dealers said.

At noon, the dollar fetched 106.64-65 yen compared with 106.49-59 yen in New York and 106.08-09 yen in Tokyo at 5 p.m. Friday.

The euro was quoted at $1.2084-2084 and 128.87-91 yen against $1.2066-2076 and 128.57-67 yen in New York and $1.2134-2135 and 128.72-76 yen in Tokyo late Friday afternoon.

Shares rebounded from the opening, with the Nikkei advancing more than 700 points at one point and retaking the 29,000 line, after tanking over 1,200 points on Friday as a spike in global bond yields triggered concern about market stability and possible changes to monetary easing.

With calm in the bond market, chip-related shares, one of the market movers behind the Nikkei's recent rally to a 30-year high, drew buybacks during the morning after meeting heavy selling Friday.

"Shares were showing recovery after a slump in the previous trading day, and investor sentiment was also improved by gains in US stock futures," said Maki Sawada, a strategist at Nomura Securities' Investment Content Department.

On the First Section, advancing issues outnumbered decliners 1,739 to 385, while 68 ended the morning unchanged.

Among chip-related issues, Advantest climbed 440 yen, or 5.0 percent, to 9,190 yen, while Screen Holdings soared 420 yen, or 5.1 percent, to 8,720 yen.

Electric appliance issues were also higher, boosted by the yen's weakness against the dollar. Alps Alpine grew 58 yen, or 4.1 percent, to 1,460 yen and Taiyo Yuden gained 120 yen, or 2.3 percent, to 5,380 yen.