Japan Nikkei rises to nearly a one-month high

Headline indices of the Japan share market advanced to nearly a one-month high on Tuesday, 15 January 2019, as investors' sentiments bolstered by weak yen and reports that China stepped up its efforts to combat an economic slowdown, a day after weak trade data from the world's second-largest economy. Total 27 out of 33 subindexes of the Tokyo Stock Exchange's were in positive territory, with shares in Precision Instruments, Machinery, Electric Appliances, Oil & Coal Products, and Glass & Ceramics Products issues being notable gainers. At closing bell, the 225-issue Nikkei index added 195.59 points, or 0.96%, at 20,555.29. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 12.99 points, or 0.85%, to 1,542.72. Markets were closed on Monday for a national holiday.

Risk appetite buying in the Tokyo market today bolstered after the China's National Development and Reform Commission said in a statement that China will strengthen monitoring of its economic situation and improve its "reserve" of economic policies. The stimulus from the China's spurred a positive movement in most of the markets, following an unexpected fall in China's December exports and imports.

 

The stimulus from the China's spurred a positive movement in most of the markets, following an unexpected fall in China's December exports and imports. Senior Chinese economic policy officials vowed to increase tax cuts to boost growth, while lending data from the country suggested December estimates may be exceeded.

China's exports to the world fell 4.4% in December from a year earlier, the biggest monthly drop in two years, pointing to further weakening in the world's second-largest economy. Imports also unexpectedly contracted, falling 7.6%, the biggest decline since July 2016. China's global trade volume rose last year but its surplus with the world fell 16.2% to $351.76 billion in 2018, as imports rose 15.8% while exports gained 9.9%.

ECONOMIC NEWS: Japan M2 Money Stock Up 2.4% On Year In December -- Japan M2 money stock was up 2.4% on year in December, the Bank of Japan said on Tuesday - coming in at 1,014.2 trillion yen, following the 2.3% gain in November. The M3 money stock climbed an annual 2.1% to 1,011.9 trillion yen. The L money stock was unchanged at 1.9%, standing at 1,790.6 trillion yen. For the fourth quarter of 2018, M2 was up 2.5% on year, while M3 advanced 2.2% and L rose 2.0%.

CURRENCY NEWS: The Japanese yen depreciated in the lower 108 yen zone against dollar on Tuesday after the confidence across the financial markets was bolstered by the Chinese stimulus measures to spur growth. The PBOC cut the RRR rate while the Finance Ministry unveiled fresh fiscal measures. The dollar was quoted at 108.24-25 yen compared with 108.11-21 yen in New York on Monday. The euro, meanwhile, fetched 124.17-18 yen against 124.00-10 yen in New York.

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