Japan Market extends gains for third day

Japan stock market finished higher for third consecutive session on Tuesday, 27 July 2021, as investors continued hunting stocks tied with economic growth on tracking positive lead from Wall Street overnight. However, market gains capped on concern about a rapid surge in COVID-19 cases in Japan and ahead of earnings reports in the upcoming days by major Japanese companies.

At closing bell, the 225-issue Nikkei Stock Average advanced 136.93 points, or 0.49%, to 27,970.22. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 12.42 points, or 0.64%, to 1,938.04.

Trading volume turnover in the 1st section decreased to 938 million shares from 966 million shares in previous session. Trading value turnover decreased to 1,997.15 billion yen from 2,249.27 billion yen in previous session.

Total 30 of 33 sectors sub-indexes on the Tokyo exchange ended higher, with top performing sectors were Air Transportation (up 3.3%), Nonferrous Metals (up 2.1%), Iron & Steel (up 1.7%), Fishery, Agriculture & Forestry (up 1.7%), Land Transportation (up 1.7%), Mining (up 1.6%), Real Estate (up 1.5%), Insurance (up 1.3%), Banks (up 1.3%), and Oil & Coal Products (up 1.3%).

Shares of air transportations advanced on expectations of travel demand recovery following Japanese municipalities began accepting applications Monday for vaccine passports for people who have been fully inoculated against COVID-19. Meanwhile, positive earnings at U.S. airlines also supported the increase of this industry. ANA Holdings and Japan Airlines both increased 3.3%.

Shares of iron & steel makers and nonferrous metal producers climbed up on rise in commodity prices in the previous day due to the expectations of economic recovery from the pandemic. Nippon Steel closed 1.8% higher, Kobe Steel finished up 1.3%, and JFE Holdings gained 2.3%.

CURRENCY NEWS: The Japanese yen traded at 110.12 per dollar, stronger than levels around 110.5 seen against the greenback yesterday.

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