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Japan: Market rises for first time in four sessions

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Capital Market
Last Updated : Aug 11 2020 | 9:16 PM IST
Japan share market finished higher for the first time in four trading sessions on Tuesday, 11 August 2020, as investors chased for bottom fishing on tracking gains on the Wall Street overnight after U.S. President Donald Trump's executive orders to maintain assistance for unemployment benefits, temporary payroll tax deferral, and student-loan relief. Meanwhile, risk sentiment also boosted by yen depreciation to lower 106 levels against greenback.

At closing bell, the 225-issue Nikkei Stock Average advanced 420.30 points, or 1.88%, to 22,750.24. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 39.22 points, or 2.54%, at 1,585.96. Japan stock market closed on Monday for a public holiday.

Total 31 issues of the 33 industry category of Topix index advanced into positive territory, with Real Estate, Iron & Steel, Banks, Air Transportation, Transportation Equipment, Land Transportation, and Construction issues being notable gainers, while Information & Communication and Other Products issues were notable losers.

Eisai surged after the drugmaker said it has submitted to the U.S. Food and Drug Administration an application for approval for a drug for Alzheimer's disease. Among other major winners were silicon wafer producer Shin-Etsu Chemical and job information service provider Recruit Holdings. On the other hand, Mitsui O.S.K. Lines fell in response to a fuel oil spill off the Indian Ocean island country of Mauritius from a cargo carrier chartered by the shipping company.

ECONOMIC NEWS: Japan Posts Y167.5 Billion Current Account Surplus In June- Japan had a current account surplus of 167.5 billion yen in June, the Ministry of Finance said on Tuesday, down 86.6% on year, following the 1,176.8 billion yen surplus in May. Exports were down 25.7% on year to 4.793 trillion yen, while imports sank an annual 14.4% to 4.870 trillion yen. The trade deficit was 77.3 billion yen in June following the 556.8 billion yen deficit in May. The capital account showed a deficit of 6.4 billion yen, while the financial account saw a surplus of 927.9 billion yen.

CURRENCY: The dollar had climbed to around 106.10 yen on Monday, up from 105.60 yen on Friday, buoyed by expectations for additional economic measures by the U.S. government to combat the economic fallout from the novel coronavirus pandemic.

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First Published: Aug 11 2020 | 4:02 PM IST

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