Tokyo stocks rebounded on the morning of the 20th, with buying spreading mainly among undervalued stocks and the Nikkei 225's gain briefly exceeding ¥900. Lower long-term interest rates supported investor sentiment.
The Nikkei 225 rebounded in morning trading in Tokyo on the 20th, with buying returning first to stocks seen as undervalued and the index's gain briefly exceeding ¥900. Lower long-term interest rates also encouraged buying in the market.
The Nikkei 225 closed the morning up ¥656.07 from the previous day at ¥65,982.49, while the TOPIX rose 36.41 points to 4048.72. The Nikkei's rise brought renewed activity to price movements across the market.
The average share price had fallen by nearly ¥3,900 over the previous 2 days, prompting buying orders across a broad range of sectors as investors focused on valuations. The decline in long-term interest rates helped improve investor sentiment.
The US Treasury announced that it would increase the maximum amount of long-term government bonds it would buy back, and the resulting decline in long-term interest rates spread to Japan.