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Japan: Nikkei rises on weaker yen, upbeat offshore lead

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Headline indices of the share market advanced to four-month highs on Monday, 15 April 2019, as risk appetite buying boosted up on following Wall Street's solid lead late last week and yen depreciation against the U. S. dollar. Meanwhile, buying momentum supported by sign of some improvement in the Chinese along with the government efforts to support growth through easing policy. Encouraging developments in the U. S.-trade negotiations also added to the positive sentiment. Around late afternoon, the 225-issue Nikkei Stock Average inclined 308.66 points, or 1.4%, at 22,179.22. The broader Topix index of all First Section issues on the Stock Exchange rose 23.70 points, or 1.5%, at 1,629.10.

All 33 subsectors of the Stock Exchange inclined, with shares in Mining, Marine Transportation, Insurance, Nonferrous Metals, Warehousing & Harbor Transportation Services, Machinery, and Securities & Commodities Futures issues being notable gainers.

markets opened higher, after stronger-than-expected data on Friday improved investor confidence. The broad-based improvement in the Chinese from to price inflation in March has boosted the market sentiment suggesting that the is slowly moving towards stabilisation. The pick-up in China's PMI since the last three months have provided some relief to the investors with the March PMI figure at 50.5. The Service activity in also quickened in March at 54.8 confirming the stability in the Chinese economy. The service sector contributes almost half to the Chinese economy. Last week's encouraging New loans and money supply surprised the market positively posting increment of 1.69 trillion in March.

Total Chinese loan in the first quarter of 2019 hit a record of 5.81 trillion Yuan. Also, total social financing, a broad measure of credit in the economy, increased by four times in March at 2.86 trillion Yuan since last month. This support implies a continuation of the recovery in the economy. Investors will look for further signs of recovery in the Chinese economy in the series of economic data due to be released this week.

Encouraging developments in the U. S.-China trade negotiations also added to the positive sentiment. Last week, said and are making progress on a trade deal, which includes agreeing on an enforcement mechanism. Still, Mnuchin declined to say if the U. S. will use tariffs as an

Exporters such as automakers advanced as the yen struggled near a 1-1/2-month low against the dollar. A softer yen is positive for Japanese exporters as it makes their products more competitive abroad and amplifies their profits when repatriated. rose 1%, gained 1.1% and rose 0.65%.

was down 4% after the company flagged an extraordinary loss of 80 billion yen ($714.54 million) due to the recall of nearly 2million related to improper vehicle inspections.

Display jumped 2.5% following news that a Chinese-Taiwanese group will take control of the

roared 10% after the agency forecasts its operating profit will increase 40% in the year through February 2020.

agency tumbled 17% with the company expecting its recurring profit to sink 17.3% in the year through February 2020.

NEWS: The depreciated around the 112 against the dollar on Monday, after stronger-than-expected China data on Friday improved investor confidence toward risk assets. The Japanese yen, considered a safe-haven currency, traded at 112.04 to the dollar, weakening from below 111.20.

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

First Published: Mon, April 15 2019. 10:03 IST