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Japan Market rises on dip-buying, Russia-Ukraine talks

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Capital Market
Last Updated : Mar 14 2022 | 4:31 PM IST
Japan share market finished session higher on Monday, 14 March 2022, as investors scooped up battered shares following the benchmark Nikkei's plunge late last week. Meanwhile, yen depreciation to upper 117-level against greenback and hopes for cease-fire negotiations between Russia and Ukraine strengthened risk sentiments.

At closing bell, the 225-issue Nikkei Stock Average stumbled 527.62 points, or 2.05%, to 25,162.78. The broader Topix index of all First Section issues on the Tokyo Stock Exchange declined 30.49 points, or 1.67%, to 1,799.54.

Total 28 of 33 TSE issues advanced, with gaining industry category were Air Transportation, Insurance, Real Estate, Marine Transportation, Securities & Commodities Futures, Transportation Equipment, and Rubber Products issues, while bottom performing industry included Electric Power & Gas, Precision Instruments, and Retail Trade issues.

Shares of export-related stocks were boosted as the yen continued to weaken against the U.S. dollar. Automaker Toyota added 2.9%, Nissan added 2% and Honda climbed 1%. Chip-testing equipment maker Advantest jumped 2.2%, while chip-making equipment manufacturer Tokyo Electron gained 1.3%.

Shares of air and land transportation issues were buoyant after Prime Minister Fumio Kishida statement that he wants to restart the government's "Go To Travel" subsidy program at an "appropriate time." ANA Holdings gained2.9%, Japan Airlines climbed 3.4%, while East Japan Railway added 3%. Travel agency H.I.S. jumped 7.5%.

Banks were also gained as higher long-term global bond yields improved the outlook for profits. Mitsubishi UFJ Financial and Mizhuo Financial gained 2-3%.

CURRENCY NEWS: The U.S. dollar rose to the upper 117 yen range, with buying fuelled by a divergence in monetary policy between the United States and Japan amid expectations that the U.S. Federal Reserve will take a hawkish stance to tackle inflation. The dollar fetched 117.72-73 yen compared with 117.25-35 yen in New York and 116.71-73 yen in Tokyo on Friday.

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First Published: Mar 14 2022 | 4:16 PM IST

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