TOKYO, Dec. 1 (Xinhua) — Japan’s benchmark Nikkei stock index closed increased Thursday, monitoring Wall Street increased in a single day, after U.S. Federal Reserve Chairman Jerome Powell’s dovish remarks on the tempo of rate of interest hikes.
The 225-issue Nikkei Stock Average added 257.09 factors, or 0.92 %, from Wednesday to shut the day at 28,226.08.
The broader Topix index, in the meantime, edged up 0.89 level, or 0.04 %, to complete at 1,986.46.
Brokers right here stated that Powell saying the Fed might sluggish the tempo of its rate of interest hikes from December despatched Wall Street increased in a single day, as market contributors had been bracing for a extra hawkish stance from the Fed chief.
“Before the speech, there was a view that the Fed will continue with a 0.75 point rate hike in December,” Yuzo Sakai, chief supervisor of international trade enterprise promotion at Ueda Totan Forex Ltd., was quoted as saying.
“That possibility shrunk after Mr. Powell’s speech, as market participants believe a 0.50 point increase is more likely,” Sakai stated.
Other market analysts stated that some considerations stay, nevertheless, in regards to the future course of the Fed’s rate of interest hikes, forward of key U.S. jobs knowledge due Friday and continued fears of a slowing U.S. financial system.
“Market participants are still cautious as they await U.S. employment data due out soon,” Takatoshi Itoshima, a strategist at Pictet Asset Management Japan, was quoted as saying, including, “The market could go up or down once investors digest a slower pace of U.S. rate hikes later in the month.”
“There could also be concerns about corporate earnings worsening on the back of a slowing economy,” Itoshima stated.
Electric equipment, chemical and precision instrument points comprised people who gained essentially the most.
Chip-related points adopted their U.S. friends increased, with heavyweight Advantest leaping 4.4 %, whereas Tokyo Electron ended the day 4 % increased.
Technology investor Softbank Group, one other heavily-weighted part, helped bolster the broader market, rising 1.6 %.
Pharmaceutical agency Eisai prolonged good points, climbing 4.7 %, on hopes that its new Alzheimer’s drug will obtain approval in Japan and abroad.
But exporter points got here beneath strain as Powell’s remarks despatched the yen increased versus the U.S. dollar.
Among these, Toyota Motor reversed 0.6 %, whereas Canon dropped 1.4 %.
Issues that rose outpaced people who fell by 1,150 to 620, whereas 66 ended the day unchanged.
On the Prime Market on Thursday, 1,244.98 million shares modified fingers, dropping from Wednesday’s quantity of 1,664.50 million shares.
The turnover on the penultimate buying and selling day of the week got here to three,140.45 billion yen (22.99 billion U.S. {dollars}).