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Japan Stocks gain on earnings optimism

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Capital Market
Last Updated : Aug 01 2022 | 4:31 PM IST
Japanese share market finished session modestly higher on Monday, 01 August 2022, on following positive lead from Wall Street on Friday and earnings optimism after some positive earnings reports.

However, market gains capped as sentiment was weighed down by a stronger yen against greenback and reports that the steady surge in the fresh wave of COVID-19 infections with the BA.5 omicron variant puts strain on hospitals.

At closing bell, the 225-issue Nikkei Stock Average index climbed by 191.71 points, or 0.69%, to 27,993.35. The broader Topix index of all First Section issues on the Tokyo Stock Exchange advanced by 19.80 points, or 1.02%, to 1,960.11.

Total 27 of 33 sectors of the Topix index were higher, with Marine Transportation issue enjoyed the largest percentage gain, up 3.6%, followed by Transportation Equipment (up 3.1%) and Wholesale Trade (up 2.7%) issues. Electric Power & Gas sector suffered the largest percentage loss, down 1.6%.

Among earnings related stocks, drugmaker Sumitomo Pharma rose 8% after announcing a quarterly profit last week. Ajinomoto, maker of the popular MSG umami seasoning, rose 6.4% on a profit beat. Building materials' firm TOTO surged 7.2% after reporting its results on Friday.

Sony Group, however, fell 3.2% after the conglomerate cut its outlook, citing waning consumer interest.

Electronics firms Fujitsu and Alps Alpine fell 6.6% and 13.4%, respectively after rising materials and logistics costs hit their earnings.

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ECONOMIC NEWS: The manufacturing sector in Japan continued to expand in July, albeit at a slower pace, the latest survey from Jibun Bank revealed on Monday with a manufacturing PMI score of 52.1. That's down from 52.7 in June, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

CURRENCY NEWS: The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 105.679, lower than last week's levels. The Japanese yen traded at 132.18 per dollar, stronger than levels seen early last week.

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First Published: Aug 01 2022 | 4:03 PM IST

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