29 June 2006, 11:55  Tokyo shares end sharply higher on bargain-hunting, Wall St rebound

Share prices finished sharply higher after bargain hunters, inspired by the rebound in US markets overnight, emerged after the benchmark Nikkei index lost 1.9 pct yesterday, dealers said. They said the market was also cheered by foreign investors having turned net buyers in their pre-opening orders today. Even so, trading was generally thin as market players awaited the US Federal Open Market Committee's (FOMC's) decision on interest rates later today, dealers said. The blue-chip Nikkei 225 Stock Average ended 235.04 points or 1.6 pct higher at 15,121.15, off a high of 15,137.58. The broader TOPIX index of all first-section issues gained 20.24 points or 1.3 pct at 1,547.75, after touching a high of 1,550.13. Winners outpaced losers 963 to 642, with 90 issues unchanged. Volume was 1.43 bln shares, down from 1.47 bln shares yesterday. "Stock prices climbed sharply as investors targeted bargains after the sharp falls yesterday, while gains overnight on Wall Street also lent support to investor sentiment," said Juichi Wako, senior strategist at Nomura Securities Financial Institute. Daiwa SB Investments chief fund manager Koichi Ogawa said players were also inspired by overseas investors having become net buyers for the first time in nine trading sessions. "But most market players were adopting a wait-and-see stance before the FOMC meeting," he said. The FOMC is widely expected to raise its key target rate by another quarter-point to 5.25 pct later today. Analysts said investors will focus on the tone of the FOMC's statement for signs of how much further the US central bank intends to raise interest rates to keep inflation under control.

© 1999-2024 Forex EuroClub
All rights reserved