Japan Nikkei extends gain on economic activity optimism

Japan share market finished session higher on Monday, 23 May 2022, with Nikkei closing above the psychological 27,000 level.

Market risk sentiments underpinned by hopes for the resumption of economic activity after Japanese government's decision late last week to ease border controls for overseas arrivals.

At closing bell, the 225-issue Nikkei Stock Average advanced 262.49 points, or 0.98%, to 27,001.52. The broader Topix index of all First Section issues on the Tokyo Stock Exchange advanced 17.20 points, or 0.92%, to 1,894.57.

Chief Cabinet Secretary Hirokazu Matsuno said on last Friday that the Japanese government would double the cap on overseas arrivals to 20,000 people per day starting next month. The relaxed policy follows a decision earlier to accept small-scale tours for vaccinated tourists from the United States, Australia, Thailand and Singapore as a trial later this month toward the full-scale reception of foreign visitors planned for June.

Shares of leisure related companies advanced on expectations for more foreign tourists. Tokyo Disney Resort operator Oriental Land and Daiichikosho both advanced gained 2%, while Travel agency H.I.S. rose 0.9%.

Tokio Marine Holdings shares surged 7.6% after the insurance company reported strong earnings for fiscal 2021 and announced plan to buy back up to 50 billion yen worth of shares.

CURRENCY NEWS: The dollar fetched 127.58-59 yen compared with 127.87-97 yen in New York and 127.92-94 yen in Tokyo at 5 p.m. Friday.

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