Jiji Press TOKYO (Jiji Press) — Stocks rebounded slightly on the Tokyo Stock Exchange on Monday, supported by growing hopes for economic stimulus measures by the government.
The 225-issue Nikkei average gained 54.19 points, or 0.33 percent, to finish at 16,466.40. On Friday, the key market gauge plunged 234.13 points.
The TOPIX index of all First Section issues closed up 1.46 points, or 0.11 percent, at 1,321.65, after falling 17.08 points the previous trading day.
Stocks opened weaker after U.S. equities fell on Friday, but cut the losses soon.
In addition to increasing hopes for Japanese fiscal action prior to the Group of Seven summit in the Ise-Shima region of Mie Prefecture on May 26-27, the market was underpinned by expectations that the government will postpone the consumption tax hike planned for April next year, brokers said.
After the Nikkei average climbed more than 220 points early in the afternoon session, however, stocks quickly lost their upward momentum toward the close.
Despite the key market gauges’ advances, falling issues outnumbered rising ones 1,099 to 742 in the First Section, while 109 issues were unchanged.
Volume fell to 1.95 billion shares from Friday’s 2.5 billion shares.