Japan Market rebounds on bargain hunting, cheaper yen

Japan share market finished session higher on Monday, 03 August 2020, snapping six sessions of losing streak, as investors chased for bottom fishing on tracking rallies on Wall Street last Friday and a cheaper yen against the dollar. Meanwhile, buying sentiments also boosted up after a survey showed the manufacturing sector in the country contracted at a slower rate in July.

At closing bell, the 225-issue Nikkei Stock Average advanced 485.38 points, or 2.24%, to 22,195.38. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 26.58 points, or 1.78%, at 1,522.64.

Total 32 sectors of 33 industry category of Topix index rebounded, with Marine Transportation, Fishery, Agriculture & Forestry, Information & Communication, Services, Glass & Ceramics Products, Electric Power & Gas, and Insurance issues being notable gainers.

 

Yamato Holdings Co. shares rose after the courier service operator forecast a 43.2% jump in operating profit for the fiscal year.

Meanwhile, Keyence Corp shares tumbled after the factory automation equipment maker logged a 21.9% decline in its March-June operating profit.

Seven & i Holdings Co shares lost after the retail group agreed to buy U.S. gas stations Speedway from Marathon Petroleum.

ECONOMIC NEWS: Japan Manufacturing PMI Remains In Contraction In July-Japan manufacturing sector continued to contract in July, with a manufacturing PMI score of 45.2, the latest survey from Jibun Bank showed on Monday. That's up from 40.1 in June, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. Individually, the downturn in output eased sharply in comparison to the second quarter months of 2020. New orders declined at the smallest extent in five months, while business expectations continued to rebound from April's low point.

Japan GDP Shrinks 2.2% On Year In Q1-Japan's final reading for gross domestic product in the first quarter of 2020 was unrevised, the Cabinet Office said on Monday, showing a 2.2% annualized decline and a seasonally adjusted 0.6% quarterly contraction. That was unchanged from June's advance reading. That officially puts Japan in recession since its GDP was down 1.9% on quarter and 7.2% on year in the fourth quarter or 2019. Capital expenditure was up 1.7% on quarter after sinking 4.8% in the previous three months - while external demand eased 0.2% on quarter after rising 0.5% in Q4. Private consumption sank 0.8% on quarter after slipping 2.9% in the three months prior.

CURRENCY: The Japanese yen traded at 105.82 per dollar after weakening sharply from levels below 105 against the greenback late in the previous trading week

Powered by Capital Market - Live News