Japan Market rebounds bargain hunting, solid machinery orders
At closing bell, the 225-issue Nikkei Stock Average advanced 202.93 points, or 0.88%, to 23,235.47. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 19.46 points, or 1.21%, to 1,624.86.
Wall Street's main indexes closed higher overnight as investors jumped back in to take advantage of the pullback in tech-related stocks. Also underpinning gains, Cabinet Office's Japan's core machinery orders, a leading gauge of capital spending, rebounded 6.3% in July from a sharp fall in the previous month. .
Stocks gained on the government's machinery order data included industrial robotics maker Fanuc Corp. adding 2.6% and industrial equipment maker THK advancing 2.9%. Makino Milling Machine, meanwhile, closed the day 2.4% higher. Yaskawa Electric rose 1.5%, while Nidec Corp. gained 3.6%.
Nintendo rose 2% after reports the game console and software maker has significantly increased its production target for its popular Switch consoles.
ECONOMIC NEWS: Japan Core Machine Orders Rebound 6.3% On Month In July- Japan total value of core machine orders gained a seasonally adjusted 6.3% on month in July, coming in at 751.3 billion yen, the Cabinet Office said on Thursday, following the 7.6% decline in June. On a yearly basis, core machine orders dropped 16.2% after tumbling 22.5% in the previous month. Government orders plummeted 30.4% on month and 18.5% on year in July, while orders from overseas gained 13.8% on month and sank 25.3% on year. Orders from agencies rose 2.3% on month and dropped 15% on year. For the third quarter of 2020, core machine orders are forecast to have fallen 1.9% on quarter and 15.5% on year.
CURRENCY: The Japanese yen traded at 106.02 per dollar after weakening from levels below 105.9 against the greenback yesterday.
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