Japan Market recovers as Mideast tensions ease

The Japan share market advanced on Tuesday, 07 January 2020, as risk sentiments propped up by gains on Wall Street overnight and a breather in the yen's against greenback after falling a day earlier amid rising geopolitical concerns in the Middle East Around late afternoon, the 225-issue Nikkei Stock Average advanced 348.11 points, or 1.5%, to 23,552.97, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange added 25.41 points, or 1.5%, at 1,722.90.

Total 32 issues of the 33 industry category of Topix index climbed into positive territory, with Precision Instruments, Services, Securities & Commodities Futures, Transportation Equipment, Textiles & Apparels, and Electric Appliances issues being notable gainers.

 

Wall Street ended firmer overnight as investors brushed aside worries about Middle East tensions, after a jittery start to the trade. The mood calmed a little as the session passed with no new aggression.

Geopolitical tensions remain centre stage with markets clearly in wait-and-see mode. Tensions between Washington, Iran and Iraq had increased after U.S. President Donald Trump threatened retaliation if Iran attacked any U.S. asset in reply to the airstrike in Iraq that killed top Iranian commander Qassem Soleimani on Friday.

Auto stocks strengthened, with major stocks up more than 1%. Mazda surged 2.8%, Honda jumped 2.2%, Toyota was up 1.7%, and Nissan rose 1.9%.

CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, depreciated against greenback and other major currencies. The Japanese yen traded at 108.44 against the dollar, weakening again from levels around 107.8 last week.

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