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Japan Market extends gain on hopes of trade talks

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Capital Market
Last Updated : Jul 24 2019 | 12:50 PM IST
Headline shares of the Japan share market closed higher on Wednesday, 25 July 2019, as investor sentiment was lifted by following gains on Wall Street overnight and hints of progress in the Sino-US trade saga. Most of subsectors of the Topix's index inclined, with mining, marine transportation, and oil and coal product-linked issues being notable gainers. At closing bell, the 225-issue Nikkei Stock Average added 88.69 points, or 0.41%, to 21,709.57, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 6.27 points, or 0.4%, at 1,575.09.

Sentiment had been helped by news reports that US Trade Representative Robert Lighthizer will lead a delegation to China next week to resume negotiations. White House economic adviser Larry Kudlow on Tuesday called it a good sign and said he expected Beijing to start buying U.S. agriculture products soon.

Shares of exporters were mostly higher, thanks to halt in yen appreciation. The dollar fetched 108.21 yen in Asian trade, against 108.22 yen in New York. Nissan was up 1% after news reports said it planned to cut around 10,000 jobs. The reports came ahead of its earnings announcement on Thursday. Its rivals were also higher, with Toyota trading up 1.1% and Honda up 0.9%. Sony was up 2.1% chip testing equipment maker Advantest rallied 3.5% and chip-making equipment manufacturer Tokyo Electron was up 1.9%.

ECONOMIC NEWS: Japan Private Sector Growth Improves In July --Japan's private sector activity growth improved in July driven by the service sector, flash survey data from IHS Markit showed Wednesday. The Jibun Bank flash composite output index rose to 51.2 in July from 50.8 in June. A reading above 50 indicates expansion in the sector. Overall private sector output expanded at the fastest pace in seven months on the back of faster growth in services activity. The services Purchasing Managers' Index climbed to 52.3 from 51.9 a month ago. The score was the joint-highest since October 2018. Although the manufacturing PMI rose to 49.6 from 49.3 in June, the score suggested contraction. The factory PMI has remained below the neutral 50 for the third consecutive month.

CURRENCY NEWS: The Japanese yen, widely viewed as a safe-haven currency, traded at 108.15 after weakening from levels below 108.0 yesterday.

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First Published: Jul 24 2019 | 12:33 PM IST

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