At closing bell, the 225-issue Nikkei Stock Average index advanced by 196.14 points, or 0.54%, to 36,354.16. The broader Topix index of all First Section issues on the Tokyo Stock Exchange grew by 17.03 points, 0.67%, to 2,556.71.
Shares of export-related companies surged after yen depreciated to 184 level against greenback on receding expectations for imminent interest rate cuts by the U.S. Federal Reserve after positive January employment data. A weak yen boosts their overseas profits when repatriated.
Banking issues were also bought on rising Japanese long-term interest rates, raising prospects for an improvement in their earnings.
ECONOMIC NEWS: Japan Service Sector Expands In January- The service sector in Japan continued to expand in January, and at a faster pace, the latest survey from Jibun Bank showed on Monday with a services PMI score of 53.1. That's up from 51.5 in December, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. Along with higher activity, these factors helped drive a further increase in new business received, extending the current sequence of growth to 17 months. Moreover, the expansion extended to international markets as growth in foreign demand for Japanese services was registered for the first time in five months amid improvements in the tourism sector, notably air travel. Service sector firms signaled that outstanding business rose for the third consecutive month in the latest survey period. The rate of accumulation was moderate and the strongest seen since last June, with firms often citing additional pressure on capacity amid continued growth in new orders.
CURRENCY NEWS: The yen depreciated to mid-148 level against greenback on Monday, on receding expectations for imminent interest rate cuts by the U.S. Federal Reserve following the solid employment data for January.
Powered by Capital Market - Live News