Tokyo stocks high as Osaka wins Expo 2025 bid
26 November 2018 – Tokyo stocks advanced today as investors welcomed the news that Osaka was picked to host the World Exposition in 2025, lifting construction, hotel and other sectors.
The 225-issue Nikkei Stock Average ended up 165.45 points, or 0.76 percent, from Thursday at 21,812.00. Japanese markets were closed Friday due to a national holiday.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 3.24 points, or 0.20 percent, higher at 1,632.20.
Gainers were led by rubber product, pulp and paper, and marine transportation issues.
Tokyo stocks extended their gains after staging a rebound on Thursday, with hopes for new development projects following Osaka being awarded the right to host the expo. The western Japanese city was picked at a general meeting of the event’s organizer in Paris on Friday.
“Short-term investors bought railway issues on expectations that they will build new lines” as the expo venue will be located on an artificial island that is currently relatively isolated, said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co.
Nankai Electric Railway rose 104 yen, or 3.6 percent, to 2,977 yen. Hotel operators and construction companies also drew buying, with Royal Hotel advancing 71 yen, or 4.0 percent, to 1,845 yen, Obayashi gaining 45 yen, or 4.1 percent, to 1,142 yen, and Penta-Ocean Construction up 37 yen, or 5.5 percent, to 715 yen.
On the First Section, advancing issues outnumbered decliners 1,119 to 915, while 78 ended the day unchanged.
Some exporters also helped boost the market as the yen retreated against the U.S. dollar.
Bucking the upward momentum, energy-related issues dropped after crude oil futures ended at the lowest level in more than a year in New York on Friday.
Explorer Inpex fell 29 yen, or 2.4 percent, to 1,158 yen while refiner Idemitsu Kosan dropped 40 yen, or 1.0 percent, to 3,855 yen.
Trading volume on the main section rose to 1,339.08 million shares from Thursday’s 1,201.62 million shares.