TOKYO: The benchmark Nikkei average gained further ground and closed at the highest level in almost 27 years on the Tokyo Stock Exchange, supported by the yen’s drop against the dollar.
The 225-issue Nikkei average rose 125.72 points, or 0.52 percent, to end at 24,245.76, the best closing since Nov. 13, 1991, following a 323.30-point surge on Friday.
The TOPIX index of all First Section issues closed up 0.71 point, or 0.04 percent, at 1,817.96, after climbing 17.14 points the previous trading day.
Purchases of mainstay issues helped the Nikkei’s advance, market sources said.
Mitsuo Shimizu, chief strategist at Aizawa Securities Co., attributed the market’s strength to “repurchases from nonresidents” of issues that had been lagging behind in the latest rally.
An official of a bank-linked securities firm said that the Bank of Japan’s Tankan quarterly survey for September, in which business sentiment among large manufacturers in the country deteriorated for the third straight quarter, “had little impact” on the market. The survey results were released shortly before the opening bell.
Yoshihiko Tabei, chief analyst at Naito Securities Co., indicated that futures-led purchases pushed up the Nikkei to its highest closing in about 27 years.