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Japan Nikkei extends gain to fourth day

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Capital Market
Last Updated : Nov 16 2021 | 7:31 PM IST
Japan share market managed to finish higher for fourth straight session on Tuesday, 16 November 2021, as sentiment was lifted by the yen's weakening in the lower 114 range against the greenback and string of positive earnings reports and guidance from Japanese firms.

However, market gains were capped as some investors locked in gains ahead of the online US-China summit. US President Joe Biden and China's Xi Jinping held talks at a virtual summit today aimed at calming tensions over Taiwan and other flashpoints.

At closing bell, the 225-issue Nikkei Stock Average advanced 31.32 points, or 0.11%, to 29,808.12. The broader Topix index of all First Section issues on the Tokyo Stock Exchange grew 2.31 points, or 0.11%, to 2,050.83. Trading volume turnover on the main section stood at 1.19 billion shares worth 2.71 trillion yen.

Total 21 of 33 Topix industry groups ended down, with bottom performing issues were Marine Transportation (down 2.6%), Pulp & Paper (down 1.2%), Land Transportation (down 1.1%), Services (down 1.1%), and Iron & Steel (down 1%) issues, while top performing issues were Mining (up 1.2%), Transportation Equipment (up 1%), Insurance (up 0.9%), Other Products (up 0.8%),and Electric Appliances (up 0.8%) issues.

Mitsubishi UFJ Financial Group was up 1% after it raised its annual profit forecast more than expected, thanks to the release of cash from pandemic-related provisions as well as a drop in other credit-related costs. Japan's largest lender hiked its profit estimate for the year to end-March by nearly a quarter to 1.05 trillion yen. For the July-September quarter, MUFG's net profit surged 83% to 398.4 billion yen. The two other Japanese megabanks, Sumitomo Mitsui Financial Group Inc and Mizuho Financial Group Inc also lifted their full-year profit forecasts when they reported last week.

ECONOMIC NEWS: Japan Tertiary Activity Index Rises 0.5% On Month In September- Japan's tertiary activity grew in September, data from the Ministry of Economy, Trade and Industry showed on Tuesday. The tertiary activity index rose 0.5% month-on-month in September, after 1.1% decrease in August. Among the individual components, living and amusement-related services, retail trade, finance and insurance, transport and postal activities, wholesale trade, electricity, gas, heat supply and water, and goods rental and leasing increased in September. Meanwhile, business-related services, real estate, information and communications, and medical, health care and welfare declined. On a yearly basis, tertiary activity tertiary activity declined 1% in September, after remaining unchanged in the previous month. CURRENCY NEWS: Japanese yen depreciated against greenback on Tuesday as demand for safe heaven dimmed on speculation that a rise in U.S. Treasury yields would widen the interest rate gap between the United States and Japan. The Japanese yen traded at 114.21 per dollar, weaker than levels below 113.9 seen against the greenback yesterday.

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First Published: Nov 16 2021 | 4:07 PM IST

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