Roundup: Tokyo stocks close higher after U.S. Federal Reserve's support lifts Wall Street

2021-02-25 12:06:07 GMT2021-02-25 20:06:07(Beijing Time) Xinhua English

TOKYO, Feb. 25 (Xinhua) -- Tokyo stocks closed higher Thursday, with the benchmark Nikkei stock index reclaiming the psychologically important 30,000 line, as the U.S. Federal Reserve indicating its continued monetary support for the pandemic-hit economy sent Wall Street higher overnight.

The 225-issue Nikkei Stock Average added 496.57 points, or 1.67 percent, from Wednesday to close the day at 30,168.27.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, rose 23.16 points, or 1.22 percent, to finish at 1,926.23.

Brokers here said that remarks by Fed Chairman Jerome Powell made in a congressional testimony stating that "the economy is a long way from our employment and inflation goal" signaled the central bank's likely intention to continue to support the economy henceforth with its accommodative policy helped lifted U.S. stocks overnight.

"Powell's comments have given a big impact on the Japanese stock market as well," Takatoshi Itoshima, a strategist at Pictet Asset Management, was quoted as saying.

"And we can say even if the market falls one day, it can rebound easily the next day. That's how strong the fundamental is," added Itoshima.

The U.S. Dow Jones index closing at a record high overnight set a positive lead for the market here along with hopes for hefty U.S. stimulus to be implemented soon, market strategists said, adding that vaccine rollouts globally and domestically continued to buoy the market mood and raised expectations for the eventual return to the normalization of business activities.

Investors seeking out undervalued issues, in addition, helped the Nikkei regain the 30,000 level, local traders added.

"With expectations for an end to the coronavirus pandemic, investors especially bought shares that had been undervalued, such as rubber product issues," Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co., was quoted as saying.

By the close of play, rubber product, metal product and consumer credit-oriented issues comprised those that gained the most.

Among rubber-linked issues finding traction, tire maker Bridgestone gained 3.3 percent, while Yokohama Rubber added 2.1 percent. Sumitomo Rubber, meanwhile, ended the day 1.9 percent higher.

Chip-related issues advanced, with Tokyo Electron rising 2.4 percent, TDK adding 2.2 percent, while industrial robotics maker Fanuc climbed 4.7 percent by the close.

Suzuki Motor skidded down 3.3 percent, after its Chairman Osamu Suzuki, 91, said Wednesday he will retire in June after 40 years of service to the automaker.

Suzuki's announcement follows Honda Motor appointing a new CEO. Honda closed up 2 percent.

Issues that rose outpaced those that fell by 1,383 to 707 on the First Section, while 102 ended the day unchanged.

On the main section on Thursday, 1,460.95 million shares changed hands, dropping from Wednesday's volume of 1,570.41 million shares.

The turnover on the penultimate trading day of the week came to 2,921.144 billion yen (27.538 billion U.S. dollars). Enditem