Japan's Nikkei closes 2 pct higher, bounces back from 14-month low-Xinhua

Japan's Nikkei closes 2 pct higher, bounces back from 14-month low

Source: Xinhua| 2022-01-28 18:18:15|Editor: huaxia

TOKYO, Jan. 28 (Xinhua) -- Japan's Nikkei stock index bounced back from a 14-week low the previous day as investors snapped-up bargains, with the market buoyed by Apple Inc.'s solid earnings.

The 225-issue Nikkei Stock Average gained 547.04 points, or 2.09 percent, from Thursday to close the day at 26,717.34.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 34.45 points, or 1.87 percent, to finish at 1,876.89.

Local brokers said that investors were keen to snap up battered shares that were dumped in a broad selloff the previous day, triggered by concerns over early rate hikes from the Fed, after hawkish remarks from Chairman Jerome Powell at a press conference following the central bank's two-day policy meeting.

They added that market players were concerned that if the Fed were to overly tighten its monetary policy, this could adversely affect the world's largest economy.

"Sentiment was at the lowest possible level yesterday and it seemed like investors were rushing to sell whatever stocks they owned," Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co., was quoted as saying.

"Today, they have regained some cool," Fujito said.

Other analysts said that shares had been oversold the previous day and so investors broadly buying back issues was a natural correction.

"There's a feeling that the selloff has gone too far, so it's natural for there to be some buying back of shares," Koji Toda, a fund manager at Resona Asset Management, was quoted as saying.

"If gains slow close to 27,000, it could be a sign of more turbulence ahead," Toda said.

Export issues, meanwhile, got a boost from the yen retreating against the U.S. dollar overnight, dealers here also said, while U.S. stock futures rising during trading hours supported hope for a solid showing on Wall Street later in the day.

Apple Inc. posted record sales for the quarter, coming in way ahead of analysts' forecasts, with brokers here saying that Japanese firms connected to Apple and also those reporting solid earnings also found favor.

"After seeing the report, investors also turned to companies in Japan that posted preferable earnings," said Fujito.

By the close of play, chemical, marine transportation, as well as pulp and paper issues comprised those that gained the most, and issues that rose outpaced those that fell by 1,926 to 219 on the First Section, while 36 ended the day unchanged.

Large cap issues found favor, with Sony Group adding 4 percent, Toyota Motor accelerating 3.4 percent and Fuji Electric soaring 10.4 percent.

Fast Retailing, owner of the casual clothing chain Uniqlo, helped prop up the broader market, rising 3.4 percent, while fellow Nikkei heavyweight SoftBank Group gained 2.2 percent by the close.

Chip-oriented issues closed mixed, with Advantest climbing 4.1 percent after projecting a significant increase in its operating profit, while Shin-Etsu Chemical jumped 7.6 percent, after releasing solid earnings for the April to December period.

Tokyo Electron, however, dropped 1.3 percent by the close, marking a fresh three-month low.

On the main section on Friday, 1,329.65 million shares changed hands, dropping from Thursday's volume of 1,545.26 million shares.

The turnover on the final trading day of the week came to 3,346.48 billion yen (28.95 billion U.S. dollars).

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