Japan Nikkei ends firmer; Eyes on U.S. jobs data

Headline indices of the Japan share market closed slight higher after trading in and out of the red on Friday, 05 July 2019, as investors hit the sidelines to await the U.S. Labor Department's employment report for June, due out Friday, for possible insights into the U.S. Federal Reserve's rate hike plans, and further announcements of earnings results by Japanese companies. At closing bell, the 225-issue Nikkei Stock Average added 0.2%, or 43.93 points, to 21,746.38, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange rose by 0.18%, or 2.80 points, at 1,592.58.

Total 21 subsectors out of 33 subsectors of the Topix's index inclined, with Marine Transportation, Retail Trade, Precision Instruments, Insurance, and Air Transportation issues being notable gainers, while Mining, Electric Power & Gas, Pulp & Paper, and Securities & Commodities Futures issues were notable losers.

 

Investors are awaiting for the release of the nonfarm payrolls report stateside later in the global day. A weaker-than-expected figure from the upcoming payrolls report could increase bets that the Fed will cut interest rates at its meeting on July 30 and 31. The central bank opened the door to easier monetary policy last month by stating it will act as appropriate to maintain the current economic expansion.

Exporters were mixed, with Advantest Corp rising 1.8%, Panasonic Corp falling 0.5% and Toyota Motor Corp was up 0.3%.

Mining and oil shares lost ground after crude oil prices fell on concerns over the outlook for global economic growth. Inpex Corp dropped 1.4% and Idemitsu Kosan shed 0.3%.

ECONOMIC NEWS: Japan Household Spending Up 4% On Year In May-- Japan's average of household spending was up 4% on year, the Ministry of Internal Affairs and Communications said on Friday - coming in at 300,901 yen, following the 1.3% gain in June. The average of monthly income per household stood at 457,376 yen, down an annual 0.2%. Disposable income was pegged at 337,967 yen, down 0.8% on year. Individually, spending was higher in June for food, housing, fuel, furniture, clothing, communications, education and recreation.

CURRENCY NEWS: Japanese yen, often seen as a safe-haven currency, was little changed against greenback on Friday. The Japanese yen, viewed as a safe-haven currency, traded at 107.83 against the dollar after weakening from levels around 107.7 yesterday

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