Japan’s Nikkei Jumps to 1-week High after US Inflation Data

Reuters

13:29 JST, September 14, 2023

TOKYO – Japan’s Nikkei share average rose more than 1% on Thursday to touch its highest level in a week, as investors were relieved after data showed underlying U.S. inflation remained on its slow, downward trajectory.

By 0145 GMT, the Nikkei index .N225 had climbed 1.1% to 33,076.49, crossing the 33,000 level for the first time since Sept. 7. Fast Retailing and heavyweight technology stocks led the gains.

The broader Topix was up 0.7% at 2,395.31.

Overnight, the S&P 500 and Nasdaq ended higher after data showing a moderate increase in August consumer prices cemented expectations that the Federal Reserve will leave interest rates unchanged in September.

“The big event was over without any negative surprises, which lifted investor sentiment,” said Jun Morita, general manager of the research department at Chibagin Asset Management.

“Looking at today’s move, investors bought the shares that lead the Nikkei higher, not the broader Topix.”

Uniqlo brand owner Fast Retailing rose 2.7%, providing the biggest boost to the Nikkei.

Chip-making equipment maker Tokyo Electron gained 3.15% and chip-testing equipment maker Advantest climbed 1.44%.

Magnetic application product maker TDK rose 2.9%.

Refiners jumped 3.15% to become the top gainer among the Tokyo Stock Exchange’s 33 industry sub-indexes, with ENEOS Holdings rising 3.43%. Idemitsu Kosan jumped 4.13%.

Airlines slipped 0.35% to become the worst performer among industry groups. Shipping firms lost 0.29%.

H.I.S. fell 6.32%, even as the travel agent narrowed its losses. The company posted a 5.6 billion yen ($38.06 million) net loss for the nine months through July, compared with a 33.26 billion yen loss a year earlier.