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Japan Market extends gain for third day

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Capital Market
Last Updated : Sep 14 2020 | 7:16 PM IST
Japan share market finished higher for third straight session on Monday, 14 September 2020, on expectations that Chief Cabinet Secretary Yoshihide Suga to win the ruling party's election race and form Japan's next government later this week, succeeding outgoing Prime Minister Shinzo Abe. Suga is expected to continue with Abe's economic policies. However, market gains capped on caution ahead of a big week of central bank meetings in UK, Japan and the United States.

At closing bell, the 225-issue Nikkei Stock Average advanced 152.81 points, or 0.65%, to 23,559.30. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 14.46 points, or 0.88%, to 1,651.10.

Investors were in an upbeat mood from the get-go as as Chief Cabinet Secretary Yoshihide Suga was set to be elected as the new leader of the ruling Liberal Democratic Party (LDP) of Japan and succeed Prime Minister Shinzo Abe as the nation's leader following almost certain parliamentary approval on Wednesday. Suga's pledges to continue Abe's economic and other policies, rather than steer the ship in any drastically new directions, was a plus for the market as investors cheer stable domestic politics.

Later this week, the US Federal Reserve will hold its two-day policy meeting where it is expected to hold rates while elaborating on the already-announced shift to inflation targeting. The Bank of Japan and the Bank of England will announce their respective policy decisions on Thursday.

Shares of air transportation issues advanced. ANA Holdings rose 0.8%, while Japan Airlines closed 0.7% higher.

Pulp and paper-related issues were also outperformed, with Nippon Paper Industries advancing 1.6%, while Pack Corp. jumped 3.7%.

SoftBank Group surged 9% after announcing it will sell its entire stake in British chip designer Arm Ltd. to U.S. semiconductor maker Nvidia Corp. in a move that could net the conglomerate up to $40 billion to help offset investment losses.

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CURRENCY: The Japanese yen traded at 106 against the greenback, following an earlier low of 106.19 per dollar.

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First Published: Sep 14 2020 | 5:41 PM IST

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