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Japan Nikkei extends gain for sixth day

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Capital Market
Last Updated : Sep 21 2018 | 4:16 PM IST
Japan share market inclined for sixth straight session on Friday, 21 September 2018, as buying sentiment grew stronger on tracking overnight gains on Wall Street and yen's weakening against the dollar on the backdrop of receding trade war worries. Total 30 issues out of 33 TSE index inclined, with shares of Oil & Coal Products, Marine Transportation, Insurance, Iron & Steel, Nonferrous Metals, Machinery and Banks issues being notable gainers. The 225-issue Nikkei average was up 0.82%, or 195.00 points, at 23,869.93. The Topix index of all first-section issues finished up 0.92%, or 16.42 points, at 1,804.02. For the week, the Nikkei 225 index gained 3.36% and the broader Topix index climbed 4.36%.

Shares of export-related companies inclined, thanks to yen's weakening against the dollar, with Honda climbing 2.13% to 3,491 yen, Panasonic gaining 1.94% to 1,366 yen and Sharp rising 1.52% at 2,393 yen.

Shares of banks and financials also closed stronger, reflecting higher US yields, with Mitsubishi UFJ up 1.12% at 722.1 yen and Sumitomo Mitsui Financial up 1.47% to 4,671 yen.

Shares of China-linked players were also higher, with construction machinery maker Komatsu up 3.38% to 3,511 yen and electronic parts maker Rohm up 3.82% to 8,420 yen.

ECONOMIC NEWS: Japan Inflation Up 1.3% On Year In August -- Japan's overall nationwide consumer prices were up 1.3% on year in August, the Ministry of Internal Affairs and Communications said on Friday, up from 0.9% in July. Core consumer prices, which exclude food costs, climbed 0.9% on year, up from 0.3% in the previous month. On a seasonally adjusted monthly basis, overall inflation was up 0.5% and core CPI added 0.3%.

Japan Nikkei Manufacturing PMI Accelerates To 52.9 In September -- Japan manufacturing sector continued to expand in September, and at an accelerated pace, with a manufacturing PMI score of 52.9, the latest survey from Nikkei revealed on Friday. That's up from 52.5 in August, and it moved further above the boom-or-bust line of 50 that separates expansion from contraction. Individually, input cost inflation accelerated at the fastest pace since March 2011 - although geopolitical tensions weighed on sentiment. Output, new orders, employment, backlogs or work and output prices all continued to increase.

CURRENCY NEWS: Japanese yen depreciated against greenback and other major currencies on Friday. The US dollar fetched 112.76 yen in late Asian trade, up from 112.50 yen in New York and 112.32 yen in Tokyo on Thursday.

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First Published: Sep 21 2018 | 4:02 PM IST

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