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Japan Market gains on buybacks, weak yen

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The Japan share market finished higher for second straight session on Tuesday, 24 March 2020, as investors continued hunting recently battered shares on the back of yen depreciation aginst greenback and after global authorities ramped up stimulus measures to combat the economic impact of the global coronavirus outbreak. At closing bell, the 225-issue Nikkei Stock Average advanced 995.34 points, or 5.89%, to 17,883.12. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 29.83 points, or 2.31%, at 1,321.84.

Total 29 issues of the 33 industry category of Topix index inclined into positive territory, with Mining, Real Estate, Oil & Coal Products, Marine Transportation, Glass & Ceramics Products, and Securities & Commodities Futures issues being notable gainers.

Investors were encouraged after the U. S. Federal Reserve announced an open-ended asset purchase program on Monday, while Germany is set to unveil major stimulus measures as the death toll from the virus rises throughout Europe.

The Fed said it would purchase Treasurys and mortgage-backed securities in the amounts needed to support smooth market functioning, showing the central bank is willing to go far beyond the $700 billion in new purchases announced last week.

The region was also up on hopes that US lawmakers will bridge their differences and pass a US$1.8 trillion economic support package.

ECONOMIC NEWS: Japan Nikkei Manufacturing Contracts To 44.8 In March- Japan's manufacturing sector continued to contract, and at a faster pace, with a preliminary manufacturing PMI score of 44.8, the latest survey from Nikkei revealed on Tuesday. That's down from 47.8 in February, and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction. The services PMI from Jibun Bank was even more troubling as it plummeted all the way down to 32.7 in March from 46.8 in February, reflecting the chaos created by the global COVID-19 pandemic. That dragged the composite PMI down to 35.8 from 47.0 a month earlier.

CURRENCY: The U. S. dollar index, which tracks the greenback against a basket of its peers, was last at 101.699 after seeing an earlier high of 102.213. The Japanese yen traded at 110.25 per dollar after touching an earlier low of 111.28.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 24 2020. 12:03 IST
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