Tokyo stocks finish higher on buying dips of high-tech issues, weak yen

2021-11-25 09:35:05 GMT2021-11-25 17:35:05(Beijing Time) Xinhua English

TOKYO, Nov. 25 (Xinhua) -- Tokyo stocks rebounded on Thursday with the benchmark Nikkei index recouping part of the 1.58-percent drop in the previous day, as market participants snapped up high-tech shares and other oversold issues.

The 225-issue Nikkei Stock Average finished 196.62 points, or 0.67 percent, higher from Wednesday at 29,499.28.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange closed 6.57 points, or 0.33 percent, higher at 2,025.69.

Trading volume on the main section dropped to 959.84 million shares from Wednesday's 1,221.87 million shares.

After the yen's overnight drop to an almost five-year low and sharp falls in the stock market a day earlier, Tokyo stocks opened high in the morning and stayed in positive territory throughout the day, as oversold high-tech shares and exporters that were supported by weak yen attracted buying.

The U.S. dollar against the Japanese yen was steady in the lower 115 yen zone after hitting 115.52 yen, its highest level since January 2017.

"As shares were oversold yesterday, some hedge funds bought back undervalued stocks," including high-tech issues, said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co., adding that market sentiment was also improved amid a breather with rising long-term U.S. Treasury yields.

Looking ahead, market investors will turn their attention to a meeting of the Organization of the Petroleum Exporting Countries and its allies on Dec. 2 to see how the group will respond to coordinated oil reserve releases by several oil consumer nations this week as well as U.S. jobs data for November.

By the close of play, precision instrument, securities house, mining and land transportation sectors headed the upward rebound. However, declining issues outnumbered advancing ones 1,073 to 1,013 on the First Section, while 97 finished unchanged.

Among high-tech firms, Sumco rose 0.5 percent and Tokyo Electron ended up 0.6 percent.

Pharmaceutical company Shionogi gained 3.0 percent after the company said early in the day that it had concluded a memorandum of understanding with Vietnam's health ministry to cooperate on infectious disease control.

Some exporters were lifted as the yen's weakness could boost their overseas earnings when repatriated, with automaker Subaru rising 1.3 percent. Enditem