Japan Nikkei rises 0.26%

Headline indices of the Japan share market closed higher on Monday, 21 January 2019, as appetite buying for risk assets supported by a continued rise on Wall Street late last week and a relatively weak yen. But the market's topside grew heavy amid wariness about a slowdown in China's economy after weaker than expected key economic data and reports that the United States and China were making little progress in their trade negotiations on intellectual property protection. In late afternoon trade, the 225-issue Nikkei index added 53.26 points, or 0.26%, at 20,719.33. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 8.78 points, or 0.56%, to 1,566.37.

China's economy grew at its slowest pace in almost three decades in 2018, losing more steam in the last quarter as it battles to quell massive debt and a US trade war, official data showed Monday. The 6.6% growth comes in above the official target of around 6.5%, but is down from the 6.8% chalked up in 2017, according to the National Bureau of Statistics (NBS). Retail sales growth slowed to 9%, down from a 10.2% increase the previous year. In December 2018, sales grew 8.2%. Output at factories and workshops ticked up 6.2% for the year, down from 6.6% in 2017.

 

Cyclical stocks such as exporters gained ground, thanks to yen depreciation against greenback. The Japanese yen recovered 0.2% against the dollar after falling more than 1% last week. Shares of TDK Corp surged 3.3%, while Sumco Corp and Nidec Corp jumped 4.3% and 3.5%, respectively.

Shares of shippers advanced after the baltic dry index, or freight charges, jumped 3.3%. Mitsui OSK Lines rose 3.5%. Kawasaki Kisen soared 3.6%, after reports that the company is considering resuming a dividend payout for the year ending March 2020.

Tokyo Tatemono ended 6.12% higher after the real estate company announced on Friday a share buyback plan. Higher crude oil prices lifted oil companies JXTG, Idemitsu, Showa Shell and Cosmo Energy. Also on the plus side were semiconductor manufacturing equipment maker Tokyo Electron and Takeda Pharmaceutical.

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