Nikkei Snaps Five-Day Losing Streak as U.S. Yields Ease
15:34 JST, October 5, 2023
TOKYO (Reuters) — Japan’s Nikkei share average snapped a five-day losing streak to record its biggest one-day percentage jump in three months on Thursday as U.S. Treasury yields eased from 16-year peaks, with investors scooping up beaten-down stocks.
The Nikkei closed up 1.80% at 31,075.36. It slid to its lowest since May 18 on Wednesday and is still on course to clock a weekly loss of 2.5%.
The broader Topix gained 1.99% at 2,263.09, clocking its best one-day percentage jump since Nov. 11.
Investors were prompted to buy back stocks after sharp declines in Japanese equities this week and U.S. Treasury yields eased, said Jun Morita, general manager of the research department at Chibagin Asset Management.
But they will be cautious about making active buying before confirming U.S. economic data such as the payrolls report, which could set directions of U.S. yields.
Foreign investors bought ¥71 billion ($478 million) worth of Japanese shares on a net basis in the week through Sept. 30, after selling a net 3 trillion yen in the week before, capital flows data showed.
Longer-dated U.S. Treasury yields eased from 16-year highs overnight after data showed that U.S. jobs growth was below economists’ expectations in September.
Investors’ focus will now be on the U.S. non-farm payrolls data due on Friday.
Chip-testing equipment maker Advantest jumped 4.7% to give the biggest boost to the Nikkei, while Tokyo Electron gained 1.6%.
Monex Group surged 17.89% to its daily limit high after Japanese mobile operator NTT Docomo said it formed a capital tie-up with the fintech firm to build a new financial services business.
"Business" POPULAR ARTICLE
-
Weakening Yen Adds Complexity to BOJ’s Rate Hike Decisions; Rising Commodity Prices may Impact ‘Virtuous Cycle’ Efforts
-
70% of Japan Companies to Raise Pay Scales in FY 2024
-
Core Consumer Prices Rise 2.8% in Fiscal 2023
-
BOJ Maintains Interest Rate at Current 0%-0.1%
-
Shinkansen to Have Private Rooms by FY 2026, JR Tokai Announces
JN ACCESS RANKING
- Weakening Yen Adds Complexity to BOJ’s Rate Hike Decisions; Rising Commodity Prices may Impact ‘Virtuous Cycle’ Efforts
- 70% of Japan Companies to Raise Pay Scales in FY 2024
- Core Consumer Prices Rise 2.8% in Fiscal 2023
- China Mutes Memorialization of Reformer Hu Yaobang; Memories Could Spark Critique of Xi Administration
- U.S. 7th Fleet officer Arrested on Suspicion of Stealing Sushi, Sashimi, Chicken at Kanagawa Shopping Mall; Suspect Caught Mid-Meal