Japan Stocks gain on bargain hunting

Japan stock market finished session slightly higher on Tuesday, 06 July 2021, as investors chased for bargain hunting on recently battered stocks. But uncertainty over the Olympics and rising coronavirus cases in Tokyo capped market gains.

At closing bell, the 225-issue Nikkei Stock Average was up 45.02 points, or 0.16%, to 28,643.21. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 5.51 points, or 0.28%, to 1,954.50.

Trading volume turnover in the 1st section increased to 794 million shares from 774 million shares in previous session. Trading value turnover increased to 1,690.96 billion yen from 1,714.43 billion yen in previous session.

Total 27 of 33 sectors sub-indexes on the Tokyo exchange ended higher, with best performers were Air Transportation (up 2.8%), Oil & Coal Products (up 1.8%), Mining (up 1.6%), Iron & Steel (up 1.3%), Land Transportation (up 1.2%), Wholesale Trade (up 1%), and Machinery (up 0.8%) issues, while worst performers were Marine Transportation (down 1%), Securities & Commodities Futures (down 0.7%), and Pharmaceutical (down 0.6%) issues.

Shares of energy companies advanced after crude oil futures briefly rose to their highest level since October 2018 in New York trading overnight after the Organization of the Petroleum Exporting Countries and other major oil producers postponed their scheduled meeting Monday amid a standoff over production levels. Cosmo Energy Holdings advanced 3.4% to 2,642 yen, Eneos Holdings was up 1.6% at 477.30 yen and Inpex climbed 1.8% to 857 yen.

ECONOMIC NEWS: Japan Household Spending Growth Slows In May- Household spending in Japan rose 11.6% in real terms from a year earlier in May, after a 13% gain in April, the Ministry of Internal Affairs and Communications said on Tuesday. This was the third straight month of increase in personal consumption, amid base effects from 2020's sharp fall due to the initial impact of the COVID-19 crisis. On a monthly basis, household spending was down 2.1 percent following the 0.1 percent gain in the previous month.

CURRENCY NEWS: The U.S. dollar was steady in the upper 110 yen range in the absence of fresh trading cues, with U.S. financial markets mostly closed Monday for a public holiday. The Japanese yen traded at 110.81 per dollar after touching levels around 110.8 against the greenback yesterday.

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