Japan Market rebounds bargain hunting, solid machinery orders

Japan share market finished session higher on Thursday, 10 September 2020, as investors chased for bargain hunting on tracking upbeat lead from Wall Street overnight, with better-than-expected domestic machinery orders data kept investor sentiment high.

At closing bell, the 225-issue Nikkei Stock Average advanced 202.93 points, or 0.88%, to 23,235.47. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 19.46 points, or 1.21%, to 1,624.86.

Wall Street's main indexes closed higher overnight as investors jumped back in to take advantage of the pullback in tech-related stocks. Also underpinning gains, Cabinet Office's Japan's core machinery orders, a leading gauge of capital spending, rebounded 6.3% in July from a sharp fall in the previous month. .

 

Stocks gained on the government's machinery order data included industrial robotics maker Fanuc Corp. adding 2.6% and industrial equipment maker THK advancing 2.9%. Makino Milling Machine, meanwhile, closed the day 2.4% higher. Yaskawa Electric rose 1.5%, while Nidec Corp. gained 3.6%.

Nintendo rose 2% after reports the game console and software maker has significantly increased its production target for its popular Switch consoles.

ECONOMIC NEWS: Japan Core Machine Orders Rebound 6.3% On Month In July- Japan total value of core machine orders gained a seasonally adjusted 6.3% on month in July, coming in at 751.3 billion yen, the Cabinet Office said on Thursday, following the 7.6% decline in June. On a yearly basis, core machine orders dropped 16.2% after tumbling 22.5% in the previous month. Government orders plummeted 30.4% on month and 18.5% on year in July, while orders from overseas gained 13.8% on month and sank 25.3% on year. Orders from agencies rose 2.3% on month and dropped 15% on year. For the third quarter of 2020, core machine orders are forecast to have fallen 1.9% on quarter and 15.5% on year.

CURRENCY: The Japanese yen traded at 106.02 per dollar after weakening from levels below 105.9 against the greenback yesterday.

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