TOKYO, April 18 (Xinhua) — Japan’s benchmark Nikkei stock index gained for an eighth straight day on Tuesday, helped by a weaker yen boosting exporter points, whereas banking points adopted their U.S. friends greater.
The 225-issue Nikkei Stock Average added 144.05 factors, or 0.51 %, from Monday to shut the day at 28,658.83.
The broader Topix index, in the meantime, gained 13.92 factors, or 0.69 %, to complete at 2,040.89.
Local brokers mentioned that the market temper was lifted by the U.S. dollar rising in opposition to the yen because of U.S. manufacturing information beating expectations.
While a weak yen is a boon for exporters, who see earnings boosted when repatriated from abroad and worth competitiveness enhanced in abroad markets, the U.S. information has raised prospects of the U.S. Federal Reserve persevering with with aggressive fee hikes within the close to time period, they added.
Market strategists right here mentioned whereas one other fee hike by the Fed subsequent month to tame inflation whereas the economic system strengthens may very well be seen as a plus, the manufacturing information runs opposite to a slew of latest information pointing to continued weak point on the earth’s largest economic system, with additional fee hikes pushing up borrowing prices amid continued considerations of a U.S. recession.
Investors right here cheered U.S. shares rising in a single day, nonetheless, notably banking shares, following the discharge of first-quarter earnings, analysts right here mentioned, partially because the earnings helped eased fears of a world monetary disaster within the wake of latest failure of two U.S. banks and a serious European lender.
“The consecutive gain was driven by the yen’s recent depreciation, higher U.S. stocks and buying of undervalued shares,” Yutaka Miura, senior technical analyst at Mizuho Securities Co., was quoted as saying.
“Concerns over a U.S. financial crisis that emerged last month have receded considerably after solid earnings from major U.S. banks released last week,” mentioned Miura.
Financial points discovered traction, with Resona Holdings climbing 2.1 %, whereas Chiba Bank was a notable winner leaping 3.4 %.
Export and know-how points uncovered to abroad markets gained on the yen’s retreat. Mazda Motor climbed 1.9 %, whereas SmoothBank Group edged 0.3 % greater.
Tourism-oriented shares additionally discovered favor on hopes for the continued rise of inbound guests, with the operator of the Don Quijote chain of low cost shops, Pan Pacific International Holdings, gaining 1.4 %, whereas division retailer operator Isetan Mitsukoshi Holdings ended 2.4 % greater.
By the shut of play, retail, financial institution and transport equipment-linked shares comprised people who gained essentially the most.
Trading quantity on the Prime Market on the second buying and selling day of the week got here to 2,493.27 billion yen (18.59 billion U.S. {dollars}).