Japan Nikkei bounces as investors buy on dips

Headline indices of the Japan share market closed higher for first time in straight five sessions on Monday, 11 March 2019, as investors chased for bottom fishing on recently battered stocks, although gains were limited as much weaker-than-expected US job data and disappointing Chinese data dimmed the outlook for the global economy. Total 25 subsectors of 33 subsectors of the Tokyo Stock Exchange inclined, with shares in Electric Power & Gas, Pulp & Paper, Real Estate, Fishery, Agriculture & Forestry, Nonferrous Metals, and Iron & Steel issues being notable gainers. At closing bell, the 225-issue Nikkei Stock Average added 99.53 points, or 0.47%, at 21,125.09. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 9 points, or 0.57%, at 1,581.44.

Bargain-hunting overwhelmed concerns about the global economy after weak US job figures and other poor global readings that sent US shares down. Data released on Friday showed US employment growth almost stalled in February, with the economy creating only 20,000 jobs, adding to signs of a sharp slowdown in economic activity in the first quarter. Wall Street's main indices fell for the fifth day on Friday in wake of the jobs report. Risk sentiment was also muted by weak Chinese inflation and new loans data released on the weekend, adding to dismal trade figures on Friday and pointed to lacklustre demand in Australia's largest trading partner.

Automakers were higher, with Toyota edging up 0.75% to 6,580 yen, Nissan up 0.44% to 915.6 yen and Honda up 0.45% at 3,005 yen. Canon was up 0.47% at 3,145 yen while Nikon was up 0.74% at 1,624 yen.

Hitachi Chemical was untraded, flooded with buy orders after a report that parent company Hitachi was considering a sale of its stake at a hefty premium of more than 40%. Hitachi is looking to offload its 51% stake in Hitachi Chemical for more than 300 billion yen.

On the economic news front, Japan M2 money stock was up 2.4% on year in February, the Bank of Japan said on Monday - coming in at 1,010.1 trillion yen, up from the downwardly revised 2.3% in January (originally 2.4%). The M3 money stock was up an annual 2.1% for the fourth straight month. The L money stock was up 2.1% on year at 1,789.5 trillion yen, accelerating from the 1.9% gain in the previous month.

CURRENCY NEWS: The Japanese yen appreciated against the dollar on Monday. The dollar fetched 111.06 yen in Asian trade, against 111.15 yen in New York late Friday. .

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