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Japan Stocks gain on upbeat global lead

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Capital Market
Japan share market finished session higher on Monday, 24 August 2020, as risk appetite buying was supported by tracking cues from gains in other major Asian bourses and Wall Street rallied late last week following upbeat U.S. business activity data for August. However, market gains caped amid rising speculations around Prime Minister Shinzo Abe's health weighed on sentiment.

At closing bell, the 225-issue Nikkei Stock Average added 65.21 points, or 0.28%, to 22,985.51. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 3.07 points, or 0.19%, to 1,607.13.

Total 16 issues of the 33 industry category of Topix index ended into black territory, with Other Products, Machinery, Retail Trade, Metal Products, Chemicals, and Wholesale Trade issues being notable gainers, while Rubber Products, Marine Transportation, Nonferrous Metals, Iron & Steel, and Air Transportation issues were notable losers.

 

Investors were wary after Japanese Prime Minister Abe entered a Tokyo hospital to receive a follow-up medical examination from last week. Last week's medical check-up stoked concerns about Abe's ability to continue as leader due to health issues and fatigue from handling the Covid-19 crisis.

Abe, already Japan's longest-serving prime minister, surpassed a half-century-old record set by his great-uncle Eisaku Sato for the longest consecutive tenure as premier on Monday, adding to speculation he may resign after reaching the milestone.

Among major shares in Tokyo, game giant Nintendo jumped 4.8% to 57,320 yen while Sony gained 1.5% to 8,407 yen. Uniqlo casual wear operator Fast Retailing climbed 1.7% to 62,110 yen. Automakers were lower with Toyota dipping 0.2% to 7,065 yen, Honda losing 0.9% to 2,626 yen, and Nissan falling 0.5% to 417.5 yen.

CURRENCY: The Japanese yen traded at 105.82 per dollar after strengthening from levels above 106 against the greenback in the previous trading week.

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First Published: Aug 24 2020 | 1:45 AM IST

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