Japan Nikkei rises to one-week high

Japan share market advanced to one-week high on Tuesday, 27 December 2022, as investors sentiments underpinned by better-than-expected readings on unemployment and retail sales data from Japan. Also boosting market sentiments was China's decision to reopen its borders and abandon strict COVID-19 quarantine measures.

However, market gains capped as investors awaited the release of the Bank of Japan's summary of opinions of the Dec 19-20 meeting due Wednesday for directional cues.

The 225-issue Nikkei Stock Average index rose by 42 points, or 0.16%, to finish at 26,447.87. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 7.63 points, or 0.4%, to 1,910.15.

 

stocks related to inbound tourism were higher, with the climb led by air transportation, retail, and land transportation issues, on expectations for higher demand. . Takashimaya surged 7.1% to 1,830 yen. Isetan Mitsukoshi Holdings jumped 7% to 1,481 yen. Japan Airlines climbed 2.2% to 2,736 yen, while West Japan Railway gained 2.4% to 5,758 yen.

ECONOMIC NEWS: Unemployment rate slid down to 2.5% in November, after remaining at 2.6% for the past two months, the Ministry of Internal Affairs and Communications reported on Tuesday. The jobs-to-applicants ratio stood at 1.35, labour ministry data showed, unchanged from October.

Retail sales grew 2.6% in November from the year earlier, as the lifting of COVID-19 border controls and the government's domestic travel subsidy helped consumer demand. The pace of annual growth in sales, a barometer of private consumption, slowed from 4.4% in October and 4.8% in September. On a seasonally adjusted basis, retail sales slipped 1.1% in November from the previous month, down for the first time in five months.

CURRENCY NEWS: The Japanese yen stood at 133 against US dollar in Asian trade on Tuesday, 0.1% depreciated from yesterday's close of 132.86, after trading in the range between 132.64-133.18.

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