Japan’s Shares Gain as Market Cheers Strong US Data, Tech Rally
Japan’s shares are rebounding on Monday as investors cheer stronger-than-expected US economic data last week. A rally in US tech stocks is boosting risk appetite and the yen’s weakening is also welcomed, pushing up export-related stocks such as electronics and automakers. Banks are gaining as well.
The Topix Index rose 1.1% to 2,708.32 as of 9:13 a.m. Tokyo time.
The Nikkei advanced 1.1% to 38,878.36.
Toyota Motor Corp. contributed the most to the Topix Index gain, increasing 2.1%. Out of 2,119 stocks in the index, 1,658 rose and 313 fell, while 148 were unchanged.
The market is also preparing for Japan’s central bank to decide on monetary policy on Friday. Most economists expect it to lift interest rates.
“The market has priced in about an 80% chance of the Bank of Japan raising interest rates this month, and it’s positive for Japanese stocks that monetary policy is becoming less opaque,” said Shoji Hirakawa, chief global strategist, Tokai Tokyo Intelligence Lab. “With the rise in US interest rates having paused, there’s likely to be buying in growth stocks.”
Source : Bloomberg
