Japan’s Nikkei stock average rose on Monday to hit the 39,000 level for the first time since late July, helped by a weaker yen and gains on Wall Street at the end of last week.
By midday, the Nikkei .N225 was up 0.2 percent at 38,709.88 points. It hit its highest level since July 31, 39,080.64 points, before profit-taking began as the yen’s slide halted. The broader Topix .TOPX was steady at 2,712.56 points.
Wall Street stocks advanced on Friday after new economic data raised expectations that the U.S. Federal Reserve would cut interest rates modestly in September. U.S. markets are closed on Monday for a holiday.
The dollar gained ground against the yen following the latest U.S. economic data, lifting shares of Japanese exporters. FRX/
A weaker Japanese currency benefits exporters as it increases the value of their overseas earnings in yen terms when companies repatriate them to Japan.
Uniqlo parent and Nikkei heavyweight Fast Retailing 9983.T rose 0.5 percent, while Toyota Motor 7203.T rose 0.9 percent, Honda Motor 7203.T climbed 1.6 percent and Mazda 7261.T gained 0.8 percent.
The transportation equipment sector .ITEQP.T, which was the best performer in early trading, pared gains to end the morning session up 0.8 percent.
Global stock markets fell sharply early last month on fears of an impending recession in the world’s largest economy, but economic data has since boosted expectations of a soft landing.
However, markets remain focused on US jobs data, with attention this week turning to weekly unemployment figures due on Thursday and non-farm payrolls for August due on Friday.
Some market participants are still concerned about the risks of a possible hard landing, “so unless that is ruled out, it will be difficult for the Nikkei to break through 39,000 points and continue to rise,” said Masayuki Kubota, chief strategist at Rakuten Securities.
Investors will also be closely watching the direction of the yen, he added.
The biggest percentage gainer on the Nikkei was IHI Corp 7013.T with a 4.5 percent rise, followed by Kawasaki Heavy Industries 7012.T, which rose 3.8 percent, and Advantest Corp 6857.T, which gained 3.2 percent.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.