Tokyo shares rebound on gains in U.S. stocks, fall in oil prices.
The key Nikkei stock average climbed Tuesday morning, erasing most of its losses marked the previous day, as investors were encouraged to buy shares on dips after a rebound on Wall Street and a fall in crude oil prices overnight.
The 225-issue Nikkei Stock Average rose 96.63 points, or 0.78 percent, to end the morning at 12,406.46. The broader Tokyo Stock Price Index of all First Section issues on the Tokyo Stock Exchange climbed 9.00 points, or 0.72 percent, to 1,267.64.
The Tokyo market staged a strong start, led by gains in mainstay issues, such as banks, brokerage firms and automakers, which faced heavy selling the previous day.
Tokyo stocks were supported as investors breathed a sigh of relief after hurricane Katrina weakened and the key crude oil futures contract fell from an all-time high above $70 per barrel hit in after-hours trading Sunday, brokers said.
''Stocks fell the previous day on expectations that U.S. shares would fall overnight amid fears over the hurricane,'' said Tsuyoshi Segawa, equity strategist at Shinko Securities Co.
But U.S. shares rebounded and oil prices fell Monday ''in the opposite scenario that investors expected yesterday, so much of today's rebound looks reasonable,'' Segawa said.
Advancers beat decliners 971 to 469, with 198 shares ending the morning unchanged.
Among other notable gainers were steel, marine transport and wholesale issues. The losing sectors were mining, oil and coal, fisheries-related and warehouse issues.
Trading volume on the TSE's main section increased to 860.05 million shares from Monday morning's 774.12 million shares.
Buy orders foreign brokerages placed before the opening are believed to have exceeded sell orders for the third straight trading day, and the net buying volume was much larger than that of the previous day, according to brokers.
Looking ahead, brokers said a wait-and-see mood is expected to grow toward the Sept. 11 general election to see whether Prime Minister Junichiro Koizumi can stay in power to implement his reform policies. Official campaigning for the election kicked off Tuesday.
Mizuho Financial Group was the most heavily traded issue by value in the morning. It rose 11,000 yen to 606,000 yen.
Medium-size hotel chain operator Tokai Kanko was the morning's volume leader, up 7 yen to 61 yen.
Softbank advanced 70 yen to 5,430 yen one day after its group firm Softbank BB Corp. said it has agreed with Japan Telecom Co. to integrate their public wireless local area network, or LAN, systems.
The TSE's Second Section index added 14.49 points, or 0.38 percent, to 3,825.16 on a volume of 196.15 million shares. In Osaka, the near-term September Nikkei 225 index futures contract advanced 80 points to 12,400.
In New York on Monday, the Dow Jones Industrial Average rose 65.76 points, or 0.63 percent, to 10,463.05. The Nasdaq Composite Index was up 16.88 points, or 0.80 percent, to 2,137.65.
|Printer friendly Cite/link Email Feedback|
|Comment:||Tokyo shares rebound on gains in U.S. stocks, fall in oil prices.|
|Publication:||Japan Weekly Monitor|
|Date:||Sep 5, 2005|
|Previous Article:||2ND LD: Jobless rate rises to 4.4% in July as people seek better jobs.|
|Next Article:||Japan gov't bonds, futures prices fall in morning deals.|