Japan Nikkei extends gain to third day; tourism-related stocks lead

Japanese share market finished higher for third consecutive session on Monday, 12 September 2022, supported by positive lead from Wall Street last Friday, yen depreciation to upper 142 range against greenback, and hopes of a recovery in the tourism industry after reports of easing tourism restrictions.

At closing bell, the 225-issue Nikkei Stock Average index inclined by 327.36 points, or 1.16%, to 28,542.11. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 14.69 points, or 0.75%, to 1,980.22.

Shares of tourism related companies advanced, after a report said Japan's government is considering scrapping its cap on the daily arrivals of overseas visitors by October.

Japan's Deputy Chief Cabinet Secretary Seiji Kihara said Sunday that the government is reviewing its strict border control policy of keeping daily entries below 50,000 and will remove it in the not-so-distant future. His remarks were followed by Chief Cabinet Secretary Hirokazu Matsuno saying Monday that the government will consider how to alleviate coronavirus restrictions, while keeping the pandemic in check.

Among tourism-related stocks, Japan Airlines rose 2%, while ANA Holdings surged 2.5%. Keisei Electric Railway, which runs trains connecting to the Haneda airport, jumped 3.6%.

Shares of department stores that are popular with tourists were also bought, with Isetan Mitsukoshi Holdings advancing 4.7%.

Exporters stocks were also higher. Electronic component manufacturer TDK gained 1.8%, while electric motor manufacturer Nidec climbed 1.5%.

CURRENCY NEWS: The Japanese yen depreciated to upper 142 level against greenback on Monday. At 5 p.m., the dollar fetched 142.76-78 yen compared with 142.60-70 yen in New York and 142.35-37 yen in Tokyo at 5 p.m. Friday.

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