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Japan Nikkei climbs to six-week high

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Headline indices of the Japan share market climbed to six-week high on Tuesday, 10 September 2019, as risk sentiment bolstered on the yen's depreciation to mid-107 level against the U. S. dollar and a bounce in major government bonds yields from recent lows. Around late afternoon, the 225-issue Nikkei Stock Average advanced 60.22 points, or 0.28%, to 21,378.64, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 5.27 points, or 0.34%, at 1,556.38.

Total 23 sectors out of 33 sectors of Topix index inclined, with Banks, Marine Transportation, Securities & Commodities Futures, Oil & Coal Products, Iron & Steel, and Mining issues being notable gainers, while Pharmaceutical, Services, Real Estate, and Precision Instruments issues were notable losers

Shares of exporters gained as the yen slipped to its lowest level since early August against the dollar. Toyota Motor Corp added 1%, Honda Motor Co climbed 1.6% and Subaru gained 0.9%.

Nissan Motor Co advanced 3%, on reports that company CEO Hiroto Saikawa will resign, effective September 16, following an admission last week that he was improperly overpaid.

Shares of financials climbed, thanks to a rebound in bond yields, which are expected to reinforce banks' profitability. Yields of major government bonds pulled back sharply from recent lows as risk appetite improved and lessened investor demand for safe-haven debt. Yields on 10-year Japanese government bonds rose to a three-week high of minus 0.230%. Mitsubishi UFJ Financial Group gained 3.5%, Mizuho Financial Group rose 2.6% and Sumitomo Mitsui Financial Group climbed 2.7%.

CURRENCY NEWS: The Japanese yen depreciated against greenback on Tuesday, as demand for safe haven currency reduced on expectation of stimulus measures from major economies . The Japanese yen, often seen as a safe-haven currency in times of turmoil, traded at 107.39 per dollar after weakening from levels below 107.0 in the previous session.

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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, September 10 2019. 11:21 IST
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