Japan Market climbs on Fed decision

Japan share market finished session sharp higher on Thursday,16 December 2021, as risk sentiments boosted up after the U.S. Federal Reserve's tapering decision and plans to hike rates three times next year was within market expectations.

At closing bell, the 225-issue Nikkei Stock Average advanced 606.60 points, or 2.13%, to 29,066.32. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 28.98 points, or 1.46%, to 2,013.08.

Total 32 of 33 Topix industry groups ended up, with top performing issues were Marine Transportation (up 4.9%), Precision Instruments (up 2.9%), Mining (up 2.1%), Electric Appliances (up 2.1%), Pharmaceutical (up 2.1%), and Land Transportation (up 1.8%).

 

Gains in Tokyo market followed a strong rebound in US stocks overnight, after the Fed said it would accelerate the wind-down of its stimulus bond-buying programme. The US Federal Reserve signalled it will phase out stimulus measures more quickly, ending them in March, which would then allow it to raise lending rates as soon as May. The Fed tapering decision and plans to hike rates three times next year was within market expectations.

ECONOMIC NEWS: Japan Manufacturing PMI Slows In December-Japan manufacturing sector continued to expand in December, albeit at a slower pace, the latest survey from Jibun Bank showed on Thursday with a manufacturing PMI score of 54.2. That's down from 54.5 in November, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the services index eased to 51.1 in December from 52.1 in November, while the composite dipped to 51.8 from 52.5 a month earlier.

Japan Posts Y954.8 Billion Trade Deficit In November-Japan posted a merchandise trade deficit of 954.8 billion yen in November, the Ministry of Finance said on Thursday, following the downwardly revised 68.5 billion yen deficit in October (originally a 67.4 billion yen deficit). Exports rose 20.5% on year to 7.367 trillion yen, after rising 9.4% in the previous month. Imports surged an annual 43.8% to 8.321 trillion yen, up from 26.7% a month earlier.

CURRENCY NEWS: The U.S. dollar was firmer in the lower 114 yen range on Thursday as U.S. Treasury yields rose after the Fed signaled three interest rate hikes next year and decided to withdraw its bond purchases faster than earlier planned. The dollar fetched at 114.12-13 yen on Thursday compared with 114.00-10 yen in New York and 113.73-74 yen in Tokyo on Wednesday.

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