TOKYO: Japan’s Nikkei share average closed at its highest level in 33 years on Monday, led by machinery makers, as a quarterly survey by the central bank signalled a recovery in corporate activities.
The Nikkei index ended 1.7% higher at 33,753.33, its highest close since March 1990. The broader Topix rose 1.41% to 2,320.81.
“U.S. stock market was strong on Friday after investor confirmed a slowdown of Personal Consumption Expenditures (PCE) index, while the BOJ’s “tankan” showed an increase in capital expenditure,” said Shuji Hosoi, senior strategist at Daiwa Securities.
Japan’s Nikkei extends gains as softer yen lifts exporters
“Pension funds finished their sell-off of stocks associated with rebalancing their portfolios, and new money has been injected in the market, which is also a positive cue.”
Wall Street’s three major indexes advanced solidly on Friday, with the tech-heavy Nasdaq boasting its biggest first-half gain in 40 years as inflation showed signs of cooling.
The Bank of Japan’s (BOJ) quarterly “tankan” survey showed Japanese business sentiment improved in the second quarter, as companies expected to increase capital expenditure and projected inflation to stay above the Bank of Japan’s 2% target five years ahead.
Machinery makers jumped 3.23% to become the top performer among the 33 industry sub-indexes on the Tokyo Stock Exchange.
Heavyweight air-conditioning maker Daikin Industries surged 6.75% and Komatsu, the world’s second-largest construction machinery maker, rose 2.01%.
Chip-related shares also rose, with chip-making equipment maker Tokyo Electron jumping 3.94% and chip-testing equipment maker Advantest jumping 5.93%.
Z Holdings, which runs internet firm Yahoo Japan, jumped 5.25%.
Meanwhile, department store operator Takashimaya lost 1.34% to become the worst performer on the Nikkei. Peer J.Front Retailing slipped 0.76%.
Comments
Comments are closed.