Japan Nikkei gains 0.16% in choppy trade

Japanese share market finished choppy session in the black on Monday, 21 November 2022, as strength in export-related stocks amid softer yen helped to offset losses in insurance and mining stocks.

However, market gains capped amid concerns over rising Chinese COVID-19 infections and hawkish comments from Federal Reserve officials about interest rate hikes.

China's is currently struggling with its worst COVID outbreak since April, which had seen several cities placed under lockdown. The Beijing government reported on Sunday that one person had died from the coronavirus, the first in mainland China in around six months amid rising infections.

Hawkish signals from the Federal Reserve drove up fears of a potential U.S. recession, with members of the central bank indicating that it will not curb its rate hikes until inflation is much closer to its annual target range. The minutes of the Fed's November meeting, due later this week, are expected to shed more light on the path of U.S. monetary policy.

At closing bell, the 225-issue Nikkei Stock Average index advanced 45.02 points, or 0.16%, to 27,944.79. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 5.54 points, or 0.28%, to 1,972.57.

Export related shares advanced as the yen weakened to upper 104 level against the U.S. dollar, boosting optimism about the firms' overseas profits when repatriated. Subaru gained 41.5 yen, or 1.8%, to 2,310.0 yen, and chip-testing equipment maker Advantest that climbed 130 yen, or 1.4%, to 9,120 yen.

Shares of insurers declined after insurers revised downward their profit forecasts for the year through March, partially due to natural disasters. Sompo Holdings plunged 491 yen, or 8%, to 5,631 yen, while MS&AD Insurance Group Holdings fell 59 yen, or 1.5%, to 3,963 yen.

CURRENCY NEWS: The dollar stood at 140.85 yen, edging down from 140.40 yen Friday in New York.

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