Japan Stocks gain on sound business survey

Japan share market finished session higher on Monday, 14 December 2020, as investors were relieved by the better-than-expected Tankan results for the second straight quarter and an improving forecast. However, market gains capped as market players refrained from chasing the upside further, amid lingering concerns about the scale of resurging COVID-19 cases and as how widely the vaccine will be available remained uncertain.

At closing bell, the 225-issue Nikkei Stock Average added 79.92 points, or 0.3%, to 26,732.44. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 8.51 points, or 0.48%, to 1,790.52.

Tokyo market commenced trading with a firm note, as the Bank of Japan's December Tankan survey showed business sentiment among major Japanese manufacturers improved for the second straight quarter with further recovery expected in the next three months. The key index for major manufacturers stood at minus 10 in December, up from minus 27 in September.

 

Shares of defence related firms gained after the Japanese defense minister said last week that Tokyo will build two naval vessels equipped with Aegis missile interceptors and plans to develop standoff missiles that can attack targets from outside the range of enemy missiles. Kawasaki Heavy Industries jumped 10% to 1,973 yen and IHI surged 7.8% to 1,959 yen.

Mitsubishi Heavy Industries advanced 6.8% to 2,928.50 yen, after reports that it will lead Japan's new fighter jet project with U.S. Lockheed Martin Corp.

CURRENCY NEWS: The U.S. dollar fetched 103.98-99 yen compared with 103.98-104.08 yen in New York and 104.06-07 yen in Tokyo on Friday.

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