Japan Nikkei rises on solid U.S. jobs data, weaker yen

Headline indices of the Japan share market closed higher on Monday, 04 February 2019, as investor sentiments bolstered on solid U.S. jobs data released late last week and a comparatively weak yen against the U.S. dollar. Total 32 sub-indexes out of 33 sub-indexes of TOPIX fell into green terrain, with shares in Other Products, Oil & Coal Products, Metal Products, Iron & Steel, Securities & Commodities Futures, and Insurance issues being notable gainers. At closing bell, the 225-issue Nikkei index rose 95.38 points, or 0.46%, at 20,883.77. The broader Topix index of all First Section issues on the Tokyo Stock Exchange gained 16.70 points, or 1.07%, to 1,581.33.

Financial firms on the hunt for rising yields outperformed on Monday after US yields advanced on a US Labor Department report showing non-farm payrolls beat expectations with the largest gain since February 2018. Dai-ichi Life Holdings surged 2.6% and Mitsubishi UFJ Financial Group advanced 1.2%.

 

Sony Corp fell 8.1% to 5,055 yen and was the most traded stock by turnover. After Friday's market close, Sony reported a lower-than-expected profit due to a sagging gaming business. Macquarie Securities cut Sony's rating to 'neutral' from 'outperform' and slashed its target price to 5,800 yen from 7,750 yen, citing greater uncertainty about the profit momentum in gaming, and risks in the consumer electronics businesses.

Honda Motor Co fell 3.5% after the carmaker said increased discounting on its CR-V SUV crossover had pushed operating profit down 40% in October-December. Quality-related costs and currency volatility also hurt its bottom line.

Factory automation equipment maker Keyence Corp surged 4.9% after posting an 11.4% rise in April-December net profit.

ECONOMIC NEWS: Japan monetary base was up 4.7% on year in January, the Bank of Japan said on Monday - coming in at 499.779 trillion yen. That follows the 4.8% increase in December. Banknotes in circulation were up 3.3% on year, while coins in circulation added an annual 1.2%. Current account balances advanced 5.2% on year, including a 3.7% jump in reserve balances. The adjusted monetary base sank 0.4% on year after sliding 0.2% in the previous month.

CURRENCY NEWS: Japanese yen depreciated in the mid-109 yen zone against greenback on Monday. The dollar was quoted at 109.44-45 yen compared with 109.44-54 yen in New York and 108.93-95 yen on Friday in Tokyo. The euro, meanwhile, fetched 125.38-42 yen against 125.38-48 yen in New York and 124.68-72 yen in late Friday afternoon trade in Tokyo.

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