Japan Nikkei surges post-election boost

Japan stock market finished session higher on first trading session of the week and of month, Monday, 01 November 2021, as appetite for risk assets underpinned on following positive lead from Wall Street last Friday's and better than expected Japan Manufacturing PMI data for October.

Meanwhile, adding to strength was hopes for political stability and the implementation of economic stimulus after the outcome of Japan's lower house election. The Japan Prime Minister Fumio Kishida's Liberal Democratic Party secured 261 seats, maintaining its single-party majority in a Sunday parliamentary election which helps to eliminate political and policy uncertainties and pave the way for fiscal stimulus.

At closing bell, the 225-issue Nikkei Stock Average surged 754.39 points, or 2.61%, to 29,647.08. The broader Topix index of all First Section issues on the Tokyo Stock Exchange grew 43.54 points, or 2.18%, to 2,044.72. Trading volume turnover on the main section stood at 1.12 billion shares worth 3.28 trillion yen.

Total 32 of 33 industry groups of the Topix ended up, with best performing issues were Precision Instruments (up 3.4%), Machinery (up 2.8%), Electric Appliances (up 2.7%), Foods (up 2.6%), Marine Transportation (up 2.5%), Banks (up 2.5%), Warehousing & Harbor Transportation Services (up 2.3%), and Transportation Equipment (up 2.3%).

Among major shares in Tokyo, Olympus rallied 3.8% to 2,554 yen, shipping firm Nippon Yusen gained 3.7% to 8,480 yen, and Toyota was up 1.32% at 2,033 yen.

Sony jumped 5.4% to 13,855 yen while airline ANA Holdings was down 1.1% at 2,623.5 yen after it forecast an annual net loss and said it would eliminate 9,000 jobs, with pandemic-hit travel demand slow to recover.

ECONOMIC NEWS: Japan Manufacturing PMI Continues To Expand In October- Japan manufacturing sector continued to expand in October, and at a faster pace, the latest survey from Jibun Bank showed on Monday with a Manufacturing PMI score of 53.2. That's up from 51.5 in September and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

CURRENCY NEWS: The Japanese yen depreciated to lower-114 level against greenback on Monday. The Japanese yen traded at 114.13 per dollar, weaker than levels below 113.4 seen against the greenback last week.

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