Nikkei closes higher on dip buying, weak yen adds support

Source: Xinhua | 2018-10-17

Tokyo stocks closed higher Tuesday as a weaker yen prompted investors to buy back issued oversold after the Nikkei's fall a day earlier, with exporters buoying the broader market.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 12.47 points, or 0.74 percent, to finish at 1,687.91.

Local traders here said that investors sought out heavyweight issues including Fast Retailing, operator of the Uniqlo casual clothing chains and SoftBank Group that were oversold the previous day when the Nikkei sank almost 1.9 percent.

They added that the yen's softer tone versus the U.S. dollar also gave exporters a boost as their profit outlooks and competitiveness in overseas markets are raised when the yen is weaker than its major counterparts.

Some investor consternation still remained, however, strategists here noted, amid ongoing concerns about U.S.-triggered trade disputes and declines on Wall Street.

Mitsubishi UFJ Morgan Stanley Securities Co.'s Norihiro Fujito said, "The risk-off mood has yet to abate given the weakness on Wall Street."

By the close of play, mining, real estate, and iron and steel-linked issues comprised those that gained the most, and rising issues beat falling ones by 1,112 to 910 on the First Section, while 87 ended the day unchanged.

On the main section on Tuesday, 1,260.21 million shares changed hands, dropping from Monday's volume of 1,400.17 million shares.