Japan Nikkei rebounds on bargain buying

Japan share market finished session higher on Tuesday, 19 April 2022, as investors chased for bargain hunting following recent selloff as well as fresh buying of semiconductor-linked shares.

However, market gains were capped by ongoing concerns over the Japanese yen's volatility and a potentially widening monetary policy gap between Japan and the U.S. Typically, Japanese mainstay exporter firms cheer a weaker yen as it enhances price competitiveness in overseas markets and can see profits augmented when repatriated on favorable exchange rates. But, a recent surge in energy and commodity prices that resource-poor Japan has to import is hurting companies' balance sheets due to the yen's weakness, which is weighing on consumer spending

 

At closing bell, the 225-issue Nikkei Stock Average advanced 185.38 points, or 0.69%, to 26,985.09. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 15.62 points, or 0.83%, to 1,895.70.

Shares of export-related companies advanced thanks to cheaper yen against the dollar. Nissan Motor gained 3.9%, Mazda Motor jumped 4.9%, while Subaru closed 2.1% higher.

Shares of chip-oriented issues advanced, boost by tracking gains in U.S. peers overnight, with Tokyo Electron rising 2.3%, while Advantest ended the day 3% higher.

CURRENCY NEWS: The Japanese yen continued weakening against the greenback, last trading at 128.21 against the greenback.

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