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▼ Nikkei Jumps To 33-Year High On U.S. Stock Surge, Robust Jobs Data
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Tokyo stocks closed Monday at 33-year highs as investor sentiment was boosted by a surge in U.S. stocks late last week and robust jobs data for May.
The 225-issue Nikkei Stock Average ended up 693.21 points, or 2.20 percent, from Friday at 32,217.43, its highest close since July 20, 1990, when Japan was experiencing an asset price bubble.
The broader Topix index finished 37.09 points, or 1.70 percent, higher at 2,219.79, its highest close since Aug. 1, 1990.
Every industry category except electric power and gas rose. Gainers were led by machinery, marine transportation, and textile and apparel shares.
The U.S. dollar remained firm in the lower 140 yen range after stronger-than-expected U.S. nonfarm payrolls growth in May reignited speculation that the Federal Reserve may not skip an interest rate hike this month, dealers said.
Tokyo stocks shot higher from the outset, extending gains toward the market close with active last-minute buying kicking in.
Investor sentiment was boosted after the Dow Jones Industrial Average finished up more than 700 points Friday, its biggest points gain since Nov. 30 last year, following the robust jobs data and a deal to avert a potential U.S. default, brokers said.
"Concerns about an imminent recession have eased as the data show that the economy is performing well," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
With the slight depreciation of the yen also helping to push Japanese stocks up, market participants are now awaiting the Fed's policy meeting next week, Ichikawa added.
The meeting will be "crucial in confirming whether the Fed will maintain its current rates or make changes based on economic data and other factors," he said.
Stocks were also buoyed by oil-related shares after Saudi Arabia said Sunday it will cut production by 1 million barrels per day in July as part of a deal between the Organization of the Petroleum Exporting Countries and other major oil producers, brokers said.
The group known as OPEC+ agreed to extend its output reduction until the end of 2024.
Among energy-related issues, oil explorer Inpex climbed 42.5 yen, or 2.8 percent, to 1,557.5 yen, while refiner Eneos Holdings was up 10 yen, or 2.1 percent, at 478.6 yen.
© KYODO
The 225-issue Nikkei Stock Average ended up 693.21 points, or 2.20 percent, from Friday at 32,217.43, its highest close since July 20, 1990, when Japan was experiencing an asset price bubble.
The broader Topix index finished 37.09 points, or 1.70 percent, higher at 2,219.79, its highest close since Aug. 1, 1990.
Every industry category except electric power and gas rose. Gainers were led by machinery, marine transportation, and textile and apparel shares.
The U.S. dollar remained firm in the lower 140 yen range after stronger-than-expected U.S. nonfarm payrolls growth in May reignited speculation that the Federal Reserve may not skip an interest rate hike this month, dealers said.
Tokyo stocks shot higher from the outset, extending gains toward the market close with active last-minute buying kicking in.
Investor sentiment was boosted after the Dow Jones Industrial Average finished up more than 700 points Friday, its biggest points gain since Nov. 30 last year, following the robust jobs data and a deal to avert a potential U.S. default, brokers said.
"Concerns about an imminent recession have eased as the data show that the economy is performing well," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
With the slight depreciation of the yen also helping to push Japanese stocks up, market participants are now awaiting the Fed's policy meeting next week, Ichikawa added.
The meeting will be "crucial in confirming whether the Fed will maintain its current rates or make changes based on economic data and other factors," he said.
Stocks were also buoyed by oil-related shares after Saudi Arabia said Sunday it will cut production by 1 million barrels per day in July as part of a deal between the Organization of the Petroleum Exporting Countries and other major oil producers, brokers said.
The group known as OPEC+ agreed to extend its output reduction until the end of 2024.
Among energy-related issues, oil explorer Inpex climbed 42.5 yen, or 2.8 percent, to 1,557.5 yen, while refiner Eneos Holdings was up 10 yen, or 2.1 percent, at 478.6 yen.
© KYODO
- June 5, 2023
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