Japan Nikkei extends gain on yen softer tone, offshore lead

Headline indices of the Japan share market were higher on Tuesday, 11 September 2018, as investors continued bargain hunting on tracking positive lead from offshore market overnight and the yen's weakening against the dollar. Total 27 issues out of 33 TSE index inclined, with shares of Oil & Coal Products, Pharmaceutical, Information & Communication, Securities & Commodities Futures, Foods, and Mining issues being notable gainers, while Iron & Steel, Pulp & Paper, and Fishery, Agriculture & Forestry issues were notable losers. In late afternoon trade, the 225-issue Nikkei Stock Average advanced 277.65 points, or 1.24%, to 22,650.74. The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, grew 10.84 points, or 0.64%, to finish at 1,698.45.

Shares of export-related companies gained as yen slipped against the dollar for the third day. Canon Inc, Panasonic, Mitsubishi Electric, Sony Corp, Toyota Motor, and Tokyo Electron rose in a range of 0.5% to 2%.

 

Technology shares climbed as their U.S. counterparts bounced overnight, with Kyocera Corp, SUMCO Corp, Advantest Corp, and Screen Holdings advanced rose in a range of 2% to 3%.

Shares of Renesas Electronics inclined almost 3% after the chipmaker said it has agreed to acquire U.S.-based Integrated Device Technology Inc. for about $6.7 billion, aiming to boost its expertise in self-driving car technologies.

Shares of Kaga Electronics Co rose almost 6% after the semiconductor manufacturer announced that it would buy Fujitsu Electronics from Fujitsu Semiconductor for 20.54 billion yen

Shares of Samco Inc gained 5.1% after electronic components equipment manufacturer reported strong earnings, with sales up 75% to 5.47 billion yen for the year through July 2018.

ECONOMIC NEWS: The Bank of Japan said that the M2 money stock in Japan was up 2.9% on year in August, coming in at 1,006.1 trillion yen. That was unchanged from the July reading following a downward revision from 3%. The M3 money stock was up an annual 2.5% at 1,337.7 trillion yen - also unchanged from the previous month following a downward revision from 2.6%.

CURRENCY NEWS: Japanese yen depreciated against greenback on Tuesday. The dollar fetched 111.17 yen in Asian trade, against 111.18 yen in New York and 110.95 yen in Tokyo on Monday.

OFFSHORE MARKET NEWS, US stock market closed mixed on Monday, as traders seemed reluctant to make any significant moves amid a lack of major U.S. economic data and lingering trade concerns after President Donald Trump ramped up trade tensions with China last Friday. The Dow Jones Industrial Average fell 59.47 points or 0.2% to 25,857.07, while the Nasdaq rose 21.62 points or 0.3% to 7,924.16 and the S&P 500 inched up 5.45 points or 0.2% to 2,877.13.

The major European stock markets ended higher on Monday. The U.K.'s FTSE 100 Index closed just above the unchanged line, the German DAX Index edged up by 0.2% and the French CAC 40 Index rose by 0.3%.

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