Japan Stocks gain on softer yen, positive US lead

Headline equities of the Japan share market were mostly higher on Friday, 29 June 2018, as investors chased for bottom hunting, thanks to positive lead from Wall Street overnight and yen depreciation to upper 110-level against greenback. Meanwhile, market gain was also underpinned by reports of China easing restrictions on foreign investment in sectors ranging from agriculture to banking. Among TSE33 issues, 23 issues were in positive terrain while remaining 10 were down. Shares Pharmaceutical, Textiles & Apparels, Banks, Electric Power & Gas, Nonferrous Metals, and Iron & Steel issues were notable gainers, while Oil & Coal Products, Pulp & Paper, Land Transportation, and Marine Transportation issues were notable losers. The 225-issue Nikkei average gained 8.74 points, or 0.04%, to 22,279.13. The Topix index of all first-section issues was up 4.17 points, or 0.24%, at 1,731.17.

Shares of Sharp Corp gained to a two-week high today as dilution fears faded after it cancelled plans to issue up to $2 billion in new shares due to trade fears-driven market volatility. The company first announced the plan on June 5, saying it would use the funds mostly to buy back preferred shares that were issued to banks in a return for a financial bailout in 2015. Sharp stock fell 21% since the announcement.

 

ECONOMIC NEWS: Japan Industrial Production Slides In May -- Japan's industrial production dropped a seasonally adjusted 0.2% month-over-month in May, reversing a 0.5% increase in April, preliminary figures from the Ministry of Economy, Trade and Industry showed Friday. It was the first decline in four months. Shipments contracted 1.6% over the month, while inventories grew by 0.6%. On a yearly basis, industrial production growth accelerated to 4.2% in May from 2.6% in April.

CURRENCY NEWS: The Japanese yen depreiated against greenback on Friday, as an absence of any fresh escalation in trade-related tensions between the United States and its major trading partners demand for safe heaven units. The dollar was up 0.26% against the yen, at 110.54 yen.

OFFSHORE MARKET NEWS: U.S. stocks closed higher on Wall Street Thursday, 28 June 2018. The Dow Jones Industrial Average rose 98.46 points, or 0.41%, to 24,216.05, the S&P 500 gained 16.68 points, or 0.62%, to 2,716.31, and the Nasdaq Composite added 58.60 points, or 0.79%, to 7,503.68.

China on Thursday eased restrictions on foreign investment in sectors ranging from banking, automobiles, heavy industry and agriculture, as it moved to open its domestic markets. In addition to confirming already announced pledges to remove ownership limits fully on Industries such as insurance and autos within the next three to five years, China will also ease or scrap ownership caps on business including ship and aircraft manufacturing, power grids and the breeding of crops, excluding wheat and corn.

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