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Roundup: Nikkei gains 1.46 pct as investors buy on dips

Xinhua, April 2, 2015 Adjust font size:

The Nikkei stock index gained 1.46 percent Thursday as investors plowed into issues deemed oversold following the previous two days of selling.

The Nikkei 225 index gained 277.95 points to finish at 19,312. 79, which the broader Topix index of all First Section issues on the Tokyo Stock Exchange added 25.18 points, or 1.65 percent, to close at 1,554.17.

Local traders said that investors were prompted to buy following two days of losses, and the index rose into positive territory where it stayed for the best part of the day, although gains were pared in later trade.

They also said that the Bank of Japan and the Government Pension Investment Fund, the largest of its type in the world, were both helping to underpin the market.

Strategists said in addition that based on the market's recent performance overall, the correction phase had ended. "The correction period has run its course. The strong performance of other Asian markets today is also a tailwind," said Hiroaki Hiwada, a strategist at Toyo Securities Co.

As such, investors were now in a position to reassess their positions and realign portfolios where necessary, but some analysts urged caution ahead of earnings season in the U.S.

"Still, with the earnings reporting season approaching in the U. S. amid thinning profit growth, it would be wise to be on guard for warnings and other signs of a slowdown in profitability," said Eiji Kinouchi, chief technical analyst at Daiwa Institute of Research.

The dollar retreating to 119.53 yen, compared to 119.87 yen logged a day earlier, did little to help exporters who rely on a weaker yen to boost their competitiveness and profit outlooks in overseas markets.

Optics and reprographics maker Olympus slumped 4.1 percent to 4, 240 yen, following Sony Corp. announcing Wednesday it would sell 50 percent of its 10 percent stake in the firm to JP Morgan Securities Japan Co.

The news worked out better for consumer electronics giant Sony, who advanced 3.1 percent to 3,336 yen, after announcing its profits after the sale would rise to 6.8 billion yen (392 million U.S. dollars) after selling its 10 percent stake in Olympus.

Canon Inc. was among the day's notable gainers, adding 3.2 percent to 4,310 yen following Citigroup Inc. raising its rating on the stock to "buy" from "neutral" on hopes for higher payouts to shareholders, now the firm has acquired a Swedish surveillance camera maker.

Tiremakers also found traction Thursday, with Toyo Tire accelerating 6.9 percent to 2,331 yen, while Bridgestone Corp. gained 2.9 percent to end the day at 4,891 yen.

And Railway issues attracted buying, with East Japan Railway jumping 3.9 percent to 10,155 yen, while Central Japan Railway Co. added 3.2 percent to end the day at 22,570 yen.

But Nippon Steel & Sumitomo Metal dropped 1.3 percent to 294 yen, following local reports the company plans to cut its crude steel production by 10 percent in the current quarter.

Trading volume on Thursday rose to 2.38 billion shares on the Tokyo Exchange's First Section, up from Wednesday volume of 2.51 billion shares, with advancing issues outnumbering advancing ones by 1,535 to 247. Endi