Japan Stocks close up on US rallies

Japan share market finished session higher on Friday, 21 August 2020, on tracking positive lead from Wall Street overnight and the latest announcement by Pfizer and BioNTech suggesting smooth progress in clinical trials on a novel coronavirus vaccine that the U.S. and German drugmakers are jointly developing. Meanwhile, buying sentiment was also brightened by receding concerns over US-China relation after the Chinese commerce ministry's announcement Thursday that Beijing and Washington will hold talks to review their phase one trade deal in the coming days. However, market gains capped due to the yen's firming against the dollar.

At closing bell, the 225-issue Nikkei Stock Average added 39.68 points, or 0.17%, to 22,920.30. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 4.86 points, or 0.3%, at 1,604.06. For the week, the Nikkei 225 index lost 1.6% and Topix index declined 1.2%.

 

Total 26 issues of the 33 industry category of Topix index ended into black territory, with Air Transportation, Iron & Steel, Rubber Products, Precision Instruments, Real Estate, and Construction issues being notable gainers, while Oil & Coal Products, Marine Transportation, and Banks issues were notable losers.

Nippon Paint Holdings Co. rocketed 6.5% in response to news reports that Singaporean peer Wuthelam will acquire the Japanese company.

Children's clothing retailer Nishimatsuya Chain Co. shot up 4.3%, after upgrading its earnings outlook for the February-August first half as well as for the full year.

ECONOMIC NEWS: Japan Manufacturing PMI Stays In Contraction In July - Japan manufacturing sector continued to contract in July with a manufacturing PMI score of 46.6, the latest survey from Jibun Bank showed on Friday. That's up from 45.2 in June, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the services PMI fell to 45.0 from 45.4 in June, while the composite PMI was unchanged at 44.9. Individually, output, new orders, new export orders, employment, backlogs of work, output prices, input prices and future output all remained in contraction territory.

Japan Nationwide Consumer Prices Up 0.3% On Year In July- Japan nationwide consumer prices were up 0.3% on year in July, up from 0.1% in June, the Ministry of Internal Affairs and Communications said on Friday. Core CPI, which excludes volatile food costs, came in flat on year. On a seasonally adjusted monthly basis, overall consumer prices were up 0.2% and core consumer prices gained 0.1%.

CURRENCY: The Japanese yen traded at 105.45 per dollar after touching levels above 106 against the greenback yesterday.

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