Japan Nikkei extends gain

Japan stock market finished higher for second straight session on Friday, 08 October 2021, as investors continued bargain buying on recently battered stocks, on tracking positive lead from Wall Street overnight after the US lawmakers reached an agreement to temporarily extend the debt limit, avoiding a potential default.

At closing bell, the 225-issue Nikkei Stock Average advanced 370.73 points, or 1.34%, to 28,048.94. The broader Topix index of all First Section issues on the Tokyo Stock Exchange climbed up 22.23 points, or 1.15%, to 1,961.85. For the week, the Nikkei dropped 2.51%.

Trading volume turnover on the main section stood at 1.35 billion shares worth 3.2 trillion yen, as compared yesterday's volume turnover of 1.33 billion shares worth 2.94 trillion yen.

Total 30 of 33 industry groups ended higher along with the Topix, with best performing issues were Mining (up 8.9%), followed by Transportation Equipment (up 2.2%), Services (up 1.7%), Electric Appliances (1.7%), and Information & Communication (up 1.7%), while Marine Transportation (down 4.8%) was worst performing issue.

Shares of exporters climbed up after the yen weakened overnight against the U.S. dollar. Electronics manufacturers Sony Group surged 1.4% and Panasonic rose 1.5%. Among automakers, Suzuki Motor advanced 2.5% and Mazda Motor gained 2.2%.

Shares of Japan's biggest refiner Eneos advanced after reports that said it would buy Japan Renewable Energy, which operates solar and wind power plants, for about 200 billion yen ($1.8 billion) from Goldman Sachs and Singaporean sovereign wealth fund GIC.

ECONOMIC NEWS: The average of household spending in Japan was down 3% on year to 266,638 yen in August, following the 0.7% increase in July, according to the Ministry of Internal Affairs and Communications report released on Friday. On a monthly basis, household spending sank 3.9% after slipping 0.9% in the previous month. The average of monthly income per household stood at 555,009 yen, up 5.4% from the previous year.

Meanwhile, Japan posted a current account surplus of 1,665.6 billion yen in August, down from the 1,910.8 billion yen surplus in July, according to the Ministry of Finance reports released on Friday. Imports were up 45.9% on year to 6,886.2 billion yen, while exports jumped an annual 27.1% to 6,513.8 billion yen for a trade deficit of 372.4 billion yen. The capital account showed a deficit of 11.7 billion yen in August, while the financial account saw a surplus of 812 billion yen.

CURRENCY NEWS: The U.S. dollar climbed in the upper 111 yen range in Tokyo trading on Friday. The dollar stood at 111.29-29 yen, down from 111.67-67 yen on Wednesday. The euro was at 128.74-81 yen, down from 129.04-11 yen.

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