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Japan Nikkei gains 0.4%

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Capital Market
Japan share market finished session in positive territory on Thursday, 05 January 2023, on the back of positive cues from Wall Street overnight and yen depreciation to mid-132 zone against greenback.

However, market gains capped on caution ahead of key U.S. jobs data due on Friday that could influence the Federal Reserve's policy trajectory.

The 225-issue Nikkei Stock Average index advanced 103.94 points, or 0.4%, to finish at 25,820.80. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 0.75 point, or 0.04%, to 1,868.90.

Shares of chip-related stocks rallied in line with U.S. peers, with Tokyo Electron adding 3.8%, while chip-testing equipment maker Advantest added 2.4%.

 

Shares of export-related issues advanced after the yen weakened against the U.S. dollar on expectations that the Federal Reserve will keep interest rates at an elevated level for a long period.

Shares of air carriers and rail operators slumped amid fading hopes for a big Chinese tourist boost as Japan - along with many other countries - tightened restrictions on mainland travellers due to COVID-19 worries.

ECONOMIC NEWS: Japan Monetary Base Falls 6.1% On Year In December --The monetary base in Japan was down 6.1% on year in December, the Bank of Japan said on Thursday - coming in at 617.222 trillion yen. Banknotes in circulation were up 2.7% on year, while coins in circulation fell 4.2%. Current account balances dropped an annual 8.1%, including a 9.4% decline in reserve balances. The monetary base was down 6.5% on year in the fourth quarter of 2022, and it was up 1.5% for all of last year.

CURRENCY NEWS: The yen depreciated to the mid-132 zone against the U.S. dollar in Asian trade on Thursday. The yen stood at 132.50 against US dollar, weakened by 0.1% from previous day close of 132.62, after trading in the range between 131.71-132.90.

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First Published: Jan 05 2023 | 3:37 PM IST

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