Tokyo stocks close up 0.62%

Written by admin on 30/07/2019 Categories: 苏州美睫

Tokyo stocks have risen 0.


62 per cent after a rally on Wall Street and as the yen weakened against the US dollar in response to upbeat US economic data.

The benchmark Nikkei 225 index on Tuesday added 86.65 points to finish at 13,996.81, while the Topix index of all first-section shares climbed 0.29 per cent, or 3.33 points, to 1,136.09.

After heavy losses last week, all three main indexes on Wall Street rallied on Monday as traders welcomed a solid earnings report from Citigroup and encouraging retail sales data.

The Dow jumped 0.91 per cent and the S&P 500 gained 0.82 per cent, while the Nasdaq, which lost more than three per cent last week, added 0.57 per cent.

On Tuesday, Japanese exporter shares rose as the US dollar strengthened to Y101.90 from Y101.82 late in New York and Y101.55 in Tokyo earlier on Monday.

However, investors remain edgy owing to renewed tensions between Ukraine and Russia.

US President Barack Obama urged his Russian counterpart, Vladimir Putin, in a telephone call to press pro-Moscow groups to lay down their arms in Ukraine after militias took over several government buildings in the country.

“The energy in the market has dwindled, as traders are having a hard time finding decent catalysts,” said SMBC Nikko Securities general manager of equities Hiroichi Nishi.

Factors such as solid Japanese corporate earnings, hopes for more monetary easing by the Bank of Japan, cheap share valuations, and proof of a strong US economic rebound could compel buying, he added.

But none of the factors alone were powerful enough to compel investors into aggressive buying, Nishi said.

“Sell pressure has lessened compared to last week, but renewed buying pressure may take some time to gather momentum,” he said.

Kazuyuki Terao, chief investment officer at Allianz Global Investors, added: “The market is still recovering after last week’s steep fall. As such, it’s difficult to say if today’s action represents a mere ‘dead cat bounce’ or something more significant.”

The Nikkei fell to a six-month low on Friday, giving up 7.33 per cent over the week, its worst weekly performance since a 10 per cent decline after Japan’s 2011 quake-tsunami disaster.

The headline index is down about 14 per cent since the start of this year.

In Tokyo trade, Sony shares rose 0.48 per cent to finish at Y1,879, while Canon inched 0.03 per cent higher to Y3,127.

Panasonic ended unchanged at Y1,077 following reports that it and Fujitsu agreed to form a joint venture of their chip operations. Fujitsu shares rose 1.02 per cent to Y589 yen.

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