Japan Nikkei gains on BOJ buying hopes

Japan share market finished session marginally higher after recouping early losses on Monday, 20 July 2020, as investors both bought on expectations for the central bank's purchases of exchange-traded funds (ETFs). However, market gains were tampered on weaker than expected Japan's export data and continued concerns over rising numbers of global coronavirus cases.

At closing bell, the 225-issue Nikkei Stock Average added 21.06 points, or 0.09%, to 22,717.48. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 3.18 points, or 0.2%, at 1,577.03.

Total 17 sub-indices of 33 industry category of Topix index fell into red territory, with Air Transportation, Land Transportation, Rubber Products, Textiles & Apparels, Real Estate, and Transportation Equipment issues being notable losers, while Securities & Commodities Futures, Machinery, Electric Appliances, and Glass & Ceramics Products issues were notable gainers.

Shares of export-oriented companies declined, with Nissan Motor Co down by 3%, while Suzuki Motor Corp and Mitsubishi Motors Corp both fell by 2.5%.

NEC Corp and Fujitsu rose 2.3% and 2.1% respectively, after reports that the British government named the companies as potential alternative suppliers to Huawei to help build its 5G wireless networks.

ECONOMIC NEWS: Japan Posts Y268.824 Billion Trade Deficit In June-Japan posted a merchandise trade deficit of 268.824 billion yen in June, the Ministry of Finance said on Monday, following the 833.4 billion yen deficit in May. Exports were down 26.2% on year to 4.862 trillion yen following the 28.3% drop in the previous month. Imports fell an annual 14.4% to 5.130 trillion yen after sinking 26.2% a month earlier.

Japan share market finished session marginally higher after recouping early losses on Monday, 20 July 2020, as investors both bought on expectations for the central bank's purchases of exchange-traded funds (ETFs). However, market gains were tampered on weaker than expected Japan's export data and continued concerns over rising numbers of global coronavirus cases.

At closing bell, the 225-issue Nikkei Stock Average added 21.06 points, or 0.09%, to 22,717.48. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 3.18 points, or 0.2%, at 1,577.03.

Total 17 sub-indices of 33 industry category of Topix index fell into red territory, with Air Transportation, Land Transportation, Rubber Products, Textiles & Apparels, Real Estate, and Transportation Equipment issues being notable losers, while Securities & Commodities Futures, Machinery, Electric Appliances, and Glass & Ceramics Products issues were notable gainers.

Shares of export-oriented companies declined, with Nissan Motor Co down by 3%, while Suzuki Motor Corp and Mitsubishi Motors Corp both fell by 2.5%.

NEC Corp and Fujitsu rose 2.3% and 2.1% respectively, after reports that the British government named the companies as potential alternative suppliers to Huawei to help build its 5G wireless networks.

ECONOMIC NEWS: Japan Posts Y268.824 Billion Trade Deficit In June-Japan posted a merchandise trade deficit of 268.824 billion yen in June, the Ministry of Finance said on Monday, following the 833.4 billion yen deficit in May. Exports were down 26.2% on year to 4.862 trillion yen following the 28.3% drop in the previous month. Imports fell an annual 14.4% to 5.130 trillion yen after sinking 26.2% a month earlier.

CURRENCY: The Japanese yen traded at 107.25 per dollar, after a turbulent previous week where it traded at around levels between 106 and 107.

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