Japan Stocks gain on bargain hunting

Japan share market finished session higher on Wednesday, 02 June 2021, as investors appetite risk assets renewed particularly for stocks sensitive to economic cycles amid growing hopes for economic recovery backed by progress in the COVID-19 vaccination program in Japan.

At closing bell, the 225-issue Nikkei Stock Average advanced 131.80 points, or 0.46%, to 28,946.14. The broader Topix index of all First Section issues on the Tokyo Stock Exchange increased 16.15 points, or 0.84%, to 1,942.33.

Trading volume turnover in the 1st section increased to 1,248 million shares from 907 million shares on previous session. Trading value turnover increased to 2,774.77 billion yen from 2,044.29 billion yen on previous session.

Total 28 sectors of 33 sectors sub-indexes on the Tokyo exchange were higher, with Land Transportation, Real Estate, Mining, Air Transportation, Marine Transportation, Textiles & Apparels, Securities & Commodities Futures, and Oil & Coal Products sectors being notable gainers, while Precision Instruments, Pulp & Paper, and Information & Communication issues were notable losers.

Stocks gained ground most of the day as investors renewed appetite particularly for economically sensitive cyclicals in view of an economic recovery with an acceleration of the coronavirus vaccine rollout after the Japanese government said it will start inoculations at workplaces and universities in late June.

Shares of department store operators advanced after reporting on Tuesday a large growth in year-on-year sales for May after suffering a sales plunge the same month last year when the nation was under the first coronavirus state of emergency. Isetan Mitsukoshi Holdings jumped 4.4% to 830 yen, Takashimaya rose 4% to 1,302 yen and J. Front Retailing increased 3.2% to 1,114 yen.

Shares of airlines and railway operators were higher on expectations that passengers may increase as more people get vaccinated. Japan Airlines added 3.5% to 2,600 yen, ANA Holdings climbed 3.2% to 2,753.00 yen and Central Japan Railway surged 5.5% to 17,200 yen.

CURRENCY NEWS: The U.S. dollar inched up to the upper 109 yen range as Japanese importers bought the currency for settlement purposes. The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 89.987 following an earlier low of 89.857. The Japanese yen traded at 109.76 per dollar, stronger than levels around 109.6 seen against the greenback yesterday.

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