Japan Nikkei advances on bargain-hunting

Japan share market finished higher for the first time in four sessions in row on Monday, 22 February 2021, as investors snapped-up issues deemed oversold on expectations of an economic recovery after the end of a coronavirus state of emergency in the Japanese capital and other regions. However, market gains capped on caution ahead of scheduled speeches by European Central Bank President Christine Lagarde later on Monday and by U.S. Federal Reserve Chairman Jerome Powell on Tuesday.

At closing bell, the 225-issue Nikkei Stock Average advanced 138.11 points, or 0.46%, to 30,156.03. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 9.40 points, or 0.49%, to 1,938.35.

 

Coronavirus-sensitive issues such as airline ANA attracted buying following the arrival of the second batch of Pfizer vaccines in Japan on Sunday.

Semiconductor-sector stocks benefited from rises in their U.S. peers on Friday, with chip-making gear manufacturers Tokyo Electron and Screen jumping 6.3% and 3.5%, respectively.

Tire-maker Yokohama Rubber rocketed 8.9% after its earnings projections for the current business year ending December, announced Saturday, beat market consensuses.

On the other hand, optical equipment maker Olympus fell back by 4.8% after climbing close to its year-to-date high last week.

ECONOMIC NEWS: Japan Services Producer Price Index Decline 0.5% On Year In January- Japan's services producer price index fell 0.5% year-on-year in January, following a 0.3% decline in December, data released by the Bank of Japan showed on Monday. This was the fourth consecutive month of decline. On a monthly basis, services producer prices dropped 0.6%, after a 0.2% rise in the previous month.

CURRENCY NEWS: The Japanese yen traded at 105.69 per dollar, stronger than levels above 106 against the greenback seen in the middle of last week.

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