Foreign
JAPAN’s Nikkei stock average bounced back Tuesday as investors snapped-up bargains oversold the previous day on concerns that rate hikes by U.S. and European central banks would lead to a global economic slowdown.
The 225-issue Nikkei Stock Average added 140.32 points, or 0.53 per cent, from Monday to close the day at 26,571.87.
The broader Topix index, meanwhile, gained 8.73 points, or 0.47 per cent, to finish at 1,873.01.
Currency officials a day earlier said they were closely monitoring one-sided currency moves and would intervene in the market again if necessary, as was the case last Thursday.
To bolster the yen versus the U.S. dollar.
But dealers said rather than the dollar-yen pairing, on Tuesday the attention was switched to the pound-dollar moves.
“Moves in the dollar-yen pair were limited as the market shifted attention to the pound-dollar pair after the British currency slid to an all-time low versus the dollar on Monday.’’
Tomoichiro Kubota, the senior market analyst at Matsui Securities Co., was quoted as saying.
While transportation and retail issues found traction on hopes for increased patronage following the government saying that its COVID-19 border controls would be further eased next month.
This would happen with the removal of a 50,000-person daily entry cap, the market’s upside was capped by concerns over an upcoming drop in U.S. shares, traders said.
“Japanese markets will continue to be supported by expectations of a rise in inbound travellers benefiting from a weak yen, as the country lagged behind others in reopening its borders,’’ Kazuo Kamitani said.
He is a strategist at the Investment Content Department of Nomura Securities Co., was quoted as saying.
“But the Tokyo market’s rebound was limited amid fears of a further fall in the U.S. and other global shares.
“With the investment money starting to shift to U.S. short-term debt securities in line with a rise in Treasury yields,’’ Kamitani said.
By the close of play, service, air transportation, and food issues comprised those that gained the most, and rising issues outpaced falling ones by 1,093 to 636 on the Prime Market, while 108 ended the day unchanged.
Nikkei heavyweight Fast Retailing, operator of the Uniqlo chain of clothing stores lifted the broader market, rising 0.9 per cent, while toy maker Konami Group was the Nikkei’s top performer, jumping 4 per cent by the close.
Plant builder Hitachi Zosen was another notable winner, adding 3.9 per cent by the close.
On the Prime Market on Tuesday, 1,145.57 million shares changed hands, dropping from Monday’s volume of 1,526.63 million shares.
The turnover on the second trading day of the week came to 2,673.68 billion yen (18.52 billion dollars). (Xinhua/NAN)
A.I
Tags: European Central Bank Japan Nikkei Konami Group Nomura Securities Co.
