Japan Market extends gain as bargain hunting continues

Japan share market finished higher for second straight session on Tuesday, 02 February 2021, as investors continued hunting recently battered stocks on positive lead from Wall Street overnight and depreciation of the yen to upper 104 level against greenback. Meanwhile, brisk corporate earnings in Japan and the expectation of additional economic stimulus in the United States also supported buying momentum.

At closing bell, the 225-issue Nikkei Stock Average advanced 271.12 points, or 0.97%, to 28,362.17. The broader Topix index of all First Section issues on the Tokyo Stock Exchange increased by 17.18 points, or 0.94%, to 1,847.02.

Shares of export related companies advanced, thanks to yen depreciation which helped exporters improves overseas profits to grow when repatriated, Toyota Motor climbed 2.2% to 7,455 yen and Honda Motor gained 1.2% to 2,808.00 yen. Panasonic grew 3.1% to 1,381.50 yen.

Automotive components maker Denso soared 7.2% to 6,351 yen on the back of its upgraded profit estimate than the announcement that it has halted production in Myanmar to ensure the safety of its employees following the coup.

CURRENCY NEWS: The Japanese yen traded at 104.69 per dollar following its weakening last week from levels below 104 against the greenback.

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