Japan Topix hits 31-year highs

Japan stock market finished session at a 31-year high on Monday, 06 September 2021, extending the winning streak to six market days, supported by slowdown in the spread of the novel coronavirus and speculation about new stimulus package from the next premier of the world's third-largest economy after the Prime Minister Yoshihide Suga decision to step down from upcoming leadership vote.

At closing bell, the 225-issue Nikkei Stock Average advanced 531.78 points, or 1.83%, to 29,659.891, its highest level since April 19. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 25.77 points, or 1.28%, to 2,041.22, its highest close since Aug. 16, 1990. Trading volume turnover in the 1st section stood at 3.04 billion shares worth 1.18 billion yen.

Total 30 of 33 industry groups advanced on the Topix, with top performing sectors were Marine Transportation (up 8.5%), Securities & Commodities Futures (up 2.7%), Machinery (up 2.3%), Information & Communication (up 2.2%), Real Estate (up 1.8%), Iron & Steel (up 1.8%), and Rubber Products (up 1.6%) sectors, while Mining (down was worst performer, followed by Electric Power & Gas (0.5%) sector.

Shares of mobile phone carrier KDDI jumped 3.6% and SoftBank Corp rose 1% on speculation that political pressure on them to cut phone fees would ease with the departure of Suga, who has pushed the issue.

Shares of Renova climbed 15.4% on prospects that green energy policy led by Suga will continue under a new leader.

CURRENCY NEWS: The Japanese yen traded in the upper 109 yen range per dollar, after lower-than-expected U.S. job growth data for August released late last week dampened sentiment that the interest rate gap between the United States and Japan will widen, as expectations grew that the U.S. Federal Reserve will not rush to start scaling back its massive bond-buying program that has supported the economy. The dollar fetched 109.89-91 yen compared with 109.64-74 yen in New York and 110.03-04 yen in Tokyo on last Friday.

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