You are here: Home » News-CM » International » Market Report
Business Standard

Japan Nikkei rises on yen depreciation, Chinese manufacturing data

Business Finance

Capital Market 

The Japan share market advanced on Monday, 02 December 2019, as risk sentiments underpinned on the yen depreciation to upper 109 level versus the dollar and expectations of large-scale fiscal spending package from Japanese government to bolster its economy. Meanwhile, buying sentiments propelled further on easing concern about the health of the world's second-largest economy after upbeat China manufacturing surveys. Market gains were, however, limited amid lingering fears that US-China trade relations may worsen after President Donald Trump signed into law a bill that voiced support for the pro-democracy protests in Hong Kong. Around late afternoon, the 225-issue Nikkei Stock Average inclined 251.01 points, or 1.08%, to 23,544.92, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange added 17.22 points, or 1%, at 1,716.58.

Total 31 issues of the 33 industry category of Topix index inclined into positive territory, with Marine Transportation, Glass & Ceramics Products, Wholesale Trade, Pharmaceutical, Electric Appliances, Pulp & Paper, and Machinery issues being notable gainers.

Tokyo stocks commenced trading with firm footing after weekend data showed China's November factory activity had rebounded for the first time in seven months despite uncertainty over US-China trade talks. The closely watched Purchasing Managers' Index (PMI), a key gauge of activity in the country's factories, rose to 50.2 in November, up from 49.3 last month, China's National Bureau of Statistics said on Saturday. Separately, a private survey on Monday showed China's manufacturing activity expanded more than expected in November as the Caixin/Markit manufacturing Purchasing Managers' Index (PMI) came in at 51.8.


S.-China tensions heightened last week after Trump signed two pieces of legislation supporting protestors in Hong Kong, prompting China's foreign ministry to claim Washington has sinister intentions after the bills were signed into law. A spokesman for the Chinese foreign ministry added Friday the country will take strong counter-measures against the U. S. The situation in Hong Kong has raised concerns of strains in trade negotiations between Washington and Beijing ahead of Dec. 15, when new tariffs on Chinese exports to the U. S. are set to kick in.

ECONOMIC NEWS: Japan manufacturing sector continued to contract in November with a manufacturing PMI score of 48.9, the latest survey from Nikkei revealed on Monday. That's up from 48.4 in October, although it remains solidly beneath the boom-or-bust line of 50 that separates expansion from contraction.

CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, depreciated against greenback. The Japanese yen traded at 109.68 against the dollar after weakening from levels below 108.9 last week.

Powered by Capital Market - Live News

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

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, December 02 2019. 10:22 IST