Japan’s Nikkei hits near 2-week high on Wall Street’s strong finish
11:09 JST, October 4, 2022
TOKYO (Reuters) — Japan’s Nikkei jumped on Tuesday to its highest in nearly two weeks, after Wall Street closed sharply higher overnight and as investors scooped up beaten-down heavyweights and growth stocks.
By 0120 GMT, the Nikkei share average had risen 2.6% to 26,908.75 in a broad rally, hitting its highest since Sept. 22, and on track for its biggest daily gain since Aug. 12. The broader Topix was up 2.66% at 1,897.05.
Wall Street’s three major indexes rallied more than 2% on Monday, as Treasury yields tumbled on weaker-than-expected manufacturing data, increasing the appeal of stocks.
“Investors scooped up shares that were beaten down, especially heavyweights and growth stocks,” said Maki Sawada, a strategist at Nomura Securities. “The market was also underpinned by the strong finish of Wall Street.”
Market participants shrugged off news that nuclear-armed North Korea fired a ballistic missile over Japan for the first time in five years earlier in the day.
Uniqlo clothing shop owner Fast Retailing rose 2.07% and was the biggest boost for the Nikkei, followed by chip-making equipment maker Tokyo Electron, rising 3.67%, and technology investor SoftBank Group, which climbed 3.49%.
Trading houses were the top performers among the Tokyo Stock Exchange’s 33 industry sub-indexes, rising 4.55% as Itochu raised its profit forecasts and announced a share buyback.
Itochu jumped 5.95%, while Mitsubishi Corp gained 4.7% and Mitsui & Co climbed 4.49%.
Energy shares gained, as oil prices rose after the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, said it would consider reducing output.
Explorers jumped 3.9%, with Inpex and Japan Petroleum Exploration Co gaining 4.21% and 2.38%, respectively.
Shippers Kawasaki Kisen was only the only decliner on the NIkkei, falling 0.8%.
"BUSINESS" POPULAR ARTICLE
Japan’s Economy Contracts as Demand Wanes
Japan Railway Operators Eye Net-zero CO2 Emissions Via Hydrogen Fuel Cell Trains
3 Japan Railway Firms to Introduce System to Pay Fare by Tapping Credit Card at Ticket Gates
Suntory’s Hibiki Whiskey Price Planned to Increase by 125％; Demand Higher than Production
Energy Challenges / High Electricity Bills Overshadow Digitalization in Japan
JN ACCESS RANKING
- Japan’s Economy Contracts as Demand Wanes
- Sardines and Mackerels Blanket Beach in Hokkaido; Local Fishermen ‘Never Seen This Many’
- Tsunami observed in Japanese coast after the earthquake near Philippines (UPDATE2)
- Autumn in Full Swing in Kyoto
- Japan Railway Operators Eye Net-zero CO2 Emissions Via Hydrogen Fuel Cell Trains