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Tokyo stocks finish higher on growing expectations of auto production recovery

TOKYO
2021-11-12 16:19

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TOKYO, Nov. 12 (Xinhua) -- Tokyo stocks finished higher on Friday with growing expectations of a recovery in auto production, after Toyota Motor Corp. said the company would normalize domestic output after being forced to trim output due to supply chain disruptions.

The 225-issue Nikkei Stock Average finished 332.11 points, or 1.13 percent, higher from Thursday at 29,609.97.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange closed 26.30 points, or 1.31 percent, higher at 2,040.60.

By the close of play, real estate, iron and steel, and mining sectors headed the upward trend. Advancing issues outnumbered declining ones 1,697 to 421 on the First Section, while 64 ended unchanged.

Trading volume on the main section increased to 1,321.45 million shares from Thursday's 1,190.30 million shares.

Tokyo stocks opened high in the morning and stayed firm throughout the day. The U.S. dollar against the Japanese yen edged up to the lower 114 yen range.

Japanese leading automaker Toyota announced before noon that operations at all of its 14 plants in Japan would return to normal in December for the first time in seven months.

Due to a worldwide semiconductor shortage and parts shortages triggered by factory shutdowns in Southeast Asian countries on the COVID-19 spreads, many carmakers have been forced to cut their production plans.

Koichi Fujishiro, a senior economist at Dai-ichi Life Research Institute, said, "With Toyota's announcement, expectations grew that other carmakers also have the prospect of securing semiconductors."

Among automakers, Toyota Motor rose 2.4 percent, Honda Motor gained 1.3 percent, and Mazda Motor ended up 1.2 percent.

SoftBank Group, a shareholder in Alibaba Group Holding Ltd., advanced 2.6 percent following brisk e-commerce sales during its Singles Day event that ended Thursday.

Ya-Man, a maker of facial beauty devices, also surged 8.3 percent after announcing strong sales during the Singles Day event.

At the same time, Kikkoman increased 3.5 percent after the firm announced to raise prices for soy sauce for the first time since 2008 due to rising raw material costs.
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