Tokyo stocks end sharply higher on record highs on Wall Street and weaker yen
Tokyo stocks closed sharply higher on Tuesday as sentiment improved after daily highs on Wall Street, while a slight weakening of the yen against the US dollar supported export-related stocks.
The Nikkei Stock Average at 225 issues ended up 505.60 points, or 1.77%, from Monday at 29,106.01. The largest Topix index of all issues in the first section of the Tokyo Stock Exchange finished 22.98 points, or 1.15%, up to 2,018.40.
All categories of industries gained ground, led by the problems of shipping, iron and steel, and electrical appliances.
The US dollar edged up towards line 114 as it was bought on the basis of speculation that the interest rate differential between the United States and Japan will widen as the US Federal Reserve expands. is preparing to normalize its monetary policy, brokers said.
At 5 p.m., the dollar was 114.04 yen at 05 yen against 113.67 yen at 77 yen in New York and 113.63 yen at 65 yen in Tokyo on Monday at 5 p.m.
The euro was listed at $ 1.1597- $ 1599 and 132.26 at 30 against $ 1.1606 at $ 1616 and 132.00 at 10 in New York and $ 1.1657 at $ 1659 and 132.46 at 50 in Tokyo Monday late afternoon.
The yield on the benchmark 10-year Japanese government bond rose 0.005 percentage point from nearly 0.1% on Monday as investors sold the safe-haven debt as Tokyo stocks posted strong gains . Bond yields move in the opposite direction to prices.
Shares rose throughout the day across a wide range of sectors following strong US corporate earnings that took Wall Street to record highs, with the market further supported by advances in some Asian markets. The Nikkei index rose almost 2%, moving in a narrow range after breaking above the 29,000 mark.
“US earnings prompted investors to buy cyclical stocks that are sensitive to economic fluctuations, while a series of factors, including gains on US stock futures and a weaker yen, pushed the market further downward. rising, ”said Maki Sawada, strategist at Nomura Securities Co.’s content department.
Investors are looking to domestic company earnings reports that will be released throughout the week, to see if the results will bring the Nikkei closer to the 30,000 mark amid concerns about how the forecast will look. profits are affected by rising prices for crude oil and materials, she said.
Concerns about the slowing economic recovery in China and its possible impact on the earnings outlook are also drawing investors’ attention amid lingering concerns about the risk of default of the debt-ridden real estate developer Evergrande Group, a. she adds.
On the first section, the increasing emissions outnumbered the declines from 1685 to 398, while 101 ended unchanged.
Among the notable winners were bride-related issues after Princess Mako, a niece of Emperor Naruhito, married her boyfriend Kei Komuro on Tuesday. The Imperial Household Agency submitted legal documents to register the couple’s marriage on their behalf, four years after their relationship was made public.
IBJ, which operates marriage counseling services, rose 16, or 1.5%, to 1,114 as wedding ceremony management company Escrit jumped ¥ 22, or 3.9%, to 581, while that baby goods maker Pigeon climbed 86, or 3.5%, to ¥ 2,546.
Kawasaki Kisen Kaisha advanced 280 yen, or 5.4%, to 5,460 yen, after a news report on Tuesday that the company’s pre-tax profit for the April to September period increased about 23 times compared to the previous year and exceeded market expectations.
Other shipping concerns were raised by the report, with Mitsui OSK Lines gaining 150, or 2.2%, to 6,870 and Nippon Yusen increasing ¥ 230, or 2.9%, to 8,080.
Some exporters jumped on the weaker yen, with automakers Suzuki Motor gaining 96 yen, or 1.9%, to 5,147 yen, and Nissan Motor up 8.9 yen, or 1.5%, to 588, 2 yen.
Main section trading volume rose to 1,141.96 million shares from 1,045.76 million shares on Monday.
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