Japan Nikkei extends gain on softer yen, upbeat offshore lead

Headline indices of the Japan share market inclined for the second straight day on Wednesday, 17 October 2018, as investors risk sentiments boosted up on tracking positive lead from Wall Street overnight and yen weakening against greenback. Total 31 out of TSE 33 issues inclined, with shares in Securities & Commodities Futures, Precision Instruments, Metal Products, Real Estate, Services, Electric Appliances, and Land Transportation issues being notable gainers. At closing bell, the 225-issue Nikkei index gained 291.88 points, or 1.3%, at 22,841.12. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 25.96 points, or 1.54%, to 1,713.87.

Shares of exporters were higher as the yen retreated from a five-week peak versus the dollar. Toyota Motor Corp climbed 1.3%, Honda Motor Co advanced 0.9% and Panasonic Corp 1.2%. Tokyo Electron rose 3%, Screen Holdings 5.4% and Advantest Corp 3.5%.

 

SoftBank Group Corp rose 2.1% following a Wall Street Journal report that ride-hailing company Uber Technologies Inc could be valued at $120 billion when it goes public next year.

Nojima Corp soared 17% after the chain store operator of electric appliances raised its net profit forecast for the six months through September 2018 to 7.2 billion yen ($64.09 million) from 6 billion yen on factors including strong air-conditioner sales during the summer heat wave.

CURRENCY NEWS: Japanese yen depreciated against greenback on Wednesday. The U.S. dollar was trading in the lower 112 yen-range on Wednesday.

OFFSHORE MARKET NEWS, US stock market closed higher on Tuesday, buoyed by strong earnings results in blue chip stocks. The Dow Jones Industrial Average surged up 547.87 points or 2.2% to 25,798.42, the Nasdaq soared 214.75 points or 2.9% to 7,645.49 and the S&P 500 jumped 59.13 points or 2.2% to 2,809.92.

European shares closed higher on Tuesday. The U.K.'s FTSE 100 Index rose by 0.4%. The German DAX Index and the French CAC 40 Index surged up by 1.4% and 1.5%, respectively.

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