TOKYO, June 21 (Xinhua) — Japan’s benchmark Nikkei stock index closed increased Wednesday as traders sought bargains together with closely weighed points like Softbank Group.
The 225-issue Nikkei Stock Average added 186.23 factors, or 0.56 p.c, from Tuesday to shut the day at 33,575.14.
The broader Topix index, in the meantime, added 11.16 factors, or 0.49 p.c, to complete at 2,295.01.
Local brokers stated the market reversed course after inheriting a downbeat lead from Wall Street in a single day, as investor sentiment brightened and turned bullish afterward, with traders snapping up heavyweights and chip-oriented points.
“After seeing the early declines, investors boosted their appetite to buy stocks on dips,” Shoichi Arisawa, normal supervisor of the funding analysis division at IwaiCosmo Securities, was quoted as saying.
“This appetite will keep Nikkei’s momentum, and the index looks set for a climb in the near term, but gradually,” Arisawa stated.
Market analysts additionally recommended traders have been stocking up on shares forward of probably hawkish remarks from Federal Reserve Chair Jerome Powell throughout his testimony later within the day, because the market eyes the extent of the Fed’s future charge hike coverage.
“Investors may also be preemptively loading up on Japanese shares in anticipation of more hawkish comments from Powell tonight,” Shingo Ide, chief fairness strategist on the NLI Research Institute, was quoted as saying.
“The more the Federal Reserve Bank tightens its monetary policy, the easier it is for the yen to weaken,” he stated.
Exporters, reliant on a weak yen to spice up earnings made abroad when repatriated, acquired a lift from the yen’s retreat towards the U.S. dollar, with Yamaha Motor including 2.3 p.c, whereas Honda Motor accelerated 1.4 p.c.
Nikkei heavyweight Softbank Group helped buoy the broader market, climbing 3.7 p.c, following the group’s annual normal assembly and after remarks made by CEO Masayoshi Son referring to a extra proactive stance in direction of AI and its advances.
Airlines additionally discovered favor with Japan Airlines rising 3.4 p.c, whereas ANA Holdings, gained 2.7 p.c.
Chip-oriented shares additionally helped prop up the market, with Advantest including 1.2 p.c, whereas Tokyo Electron jumped 2.8 p.c.
By the shut of play, air transportation, insurance coverage, and iron and metal shares comprised those who gained essentially the most.
The turnover on the Prime Market on the third buying and selling day of the week got here to three,894.50 billion yen (27.46 billion U.S. {dollars}).