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Japan Stocks close higher on bargain buying

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Capital Market
Last Updated : Aug 19 2020 | 5:04 PM IST
Japan share market finished session modest higher after recovering early losses on Wednesday, 19 August 2020, as investors chased for value buying following two days of declines and yen depreciation against greenback.

At closing bell, the 225-issue Nikkei Stock Average advanced 59.53 points, or 0.26%, to 23,110.61. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 2.88 points, or 0.18%, at 1,613.73.

Total 22 issues of the 33 industry category of Topix index inclined into positive territory, with Real Estate, Other Financial Business, Air Transportation, Rubber Products, Land Transportation, and Iron & Steel issues being notable gainers, while Pulp & Paper, Precision Instruments, Electric Appliances, and Machinery issues were notable losers.

Tokyo shares opened lower as the data showed Japan total value of core machine orders was down 7.6% on month in June and Japan's exports in July declined 19.2% as compared with a year ago. But investors started buying on dips as investor appetite for stocks seen trading at a discount increased and as the yen depreciation against greenback, helping the Nikkei index close in positive territory.

ECONOMIC NEWS: Japan Core Machine Orders Down 7.6% On Month In June--Japan total value of core machine orders was down 7.6% on month in June, coming in at 706.6 billion yen, the Cabinet Office said on Wednesday, following the 1.7% increase in May. On a yearly basis, core machine orders sank 22.5%, following the 16.3% slide in the previous month. For the second quarter of 2020, orders were down 12.9% on quarter and 19.1% on year to 2,224.3 billion yen. For the third quarter, orders are forecast to slip a.9% on quarter and 15.5% on year.

Japan Posts Y11.641 Billion Trade Surplus In July-Japan posted a merchandise trade surplus of 11.641 billion yen in July, the Ministry of Finance said on Wednesday, following the 268.8 billion yen shortfall in June. Exports slumped 19.2% on year, following the 26.2% drop in the previous month. Imports were down an annual 22.3% following the 14.4% slide a month earlier.

CURRENCY: The Japanese yen traded at 105.40 per dollar following an earlier high of 105.09 against the greenback.

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First Published: Aug 19 2020 | 4:47 PM IST

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