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Tokyo stocks finish higher on fears over U.S. gov't default receding

2021-10-08 17:18

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TOKYO, Oct. 8 (Xinhua) -- Tokyo stocks continued the rebound in the previous day and ended higher on Friday, as concerns over a U.S. government default released after the U.S. Senate agreed on a short-term deal to lift the debt ceiling.

Briefly surging over 2 percent, the 225-issue Nikkei Stock Average finished 370.73 points, or 1.34 percent, higher from Thursday at 28,048.94.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange closed 22.23 points, or 1.15 percent, higher at 1,961.85.

Trading volume on the main section increased to 1,356.77 million shares from Thursday's 1,330.87 million shares.

Tokyo stocks opened sharply high in the morning and moved in the positive territory throughout the day. Supported by advances in other Asian stock markets, the Nikkei index quickly climbed over the 28,000 line and briefly rising more than 600 points.

The market tracked an overnight increase in the U.S. market after Senate Majority Leader Chuck Schumer on Thursday said the U.S. debt ceiling had been lifted through early December, staving off a potential economic downturn caused by default.

In the recent U.S. debt crisis, Congress clashed over raising the government's debt ceiling, as U.S. Treasury Secretary Janet Yellen noted that the country would reach its borrowing limit by Oct. 18.

Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co., said, "Investors were relieved by the development in the United States as risk appetite returned, although some refrained from chasing the upside in the afternoon ahead of U.S. employment data for September due out later in the day."

He added that the strong rebound in the Tokyo market was also a reaction to the recent sharp decline.

Brokers said that the market showed a limited reaction to the powerful earthquake on Thursday night, which was the strongest experienced in Tokyo and its surrounding area in a decade.

By the close of play, mining, warehousing and harbor transportation service, and electric appliance shares headed the increase. Advancing issues outnumbered declining ones 1,746 to 358 on the First Section, while 79 finished unchanged.

After the yen weakened overnight against the U.S. dollar, exporters attracted buyings, with electronics manufacturers Sony Group rising 1.4 percent and Panasonic gaining 1.5 percent, while automakers Suzuki Motor advancing 2.5 percent and Mazda Motor ending up 2.2 percent.
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