Japans Nikkei closes 2-month high on strong earnings

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TOKYO, Aug 5 (UrduPoint/Pakistan Point News – Aug 5, 2022): Japan’s benchmark Nikkei stock index ended near a two-month high on Friday as strong corporate earnings boosted investor sentiment.

The 225-number Nikkei Stock Average gained 243.67 points, or 0.87%, from Thursday to close the day at 28,175.87, marking its highest closing level since June 9.

The broader Topix index, meanwhile, added 16.44 points, or 0.85%, to end at 1,947.17. Dealers here said the Nikkei closed above the psychologically important 28,000 line for the first time in nearly two months, helped by strong earnings reports the day before.

“Japanese equities were supported by the release of stronger-than-expected domestic corporate earnings on Thursday, helping the Nikkei finish above the 28,000 line after a few recent failed attempts,” said Chihiro Ota of SMBC Nikko Securities. Inc..

Sentiment was also supported by a drop in crude oil prices, which raised hopes of lower commodity costs, as well as a rise in U.S. equity futures, strategists here also said. .

“Investor sentiment has improved on expectations of lower commodity costs for Japanese companies,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

Strategists here also said investors are watching the U key carefully.

S. jobs data is expected to be released later today to provide clues about the future direction of the US Federal Reserve’s aggressive monetary policy, amid continued concerns over the health of the US. American economy.

At the end of the game, problems related to iron and steel, food and metal products were the most gained, and the problems which increased exceeded those which fell from 1,359 to 418 on the Prime Market, while 61 ended the day unchanged.

Tech issues followed their US counterparts higher overnight, with Screen Holdings climbing 2.6%, while Tokyo Electron gained 2.8%. Advantest, meanwhile, jumped 3.1% at the close.

Heavyweight Nikkei Fast Retailing, owner of clothing chain Uniqlo, helped lift the broader market, up 1.3%.

Kikkoman Corp. and Nippon Steel jumped 9.2% and 8.3% respectively, and were among the best performers in the Nikkei after reporting strong earnings and earnings that beat market expectations.

Konami Group Corp. however, weighed on the market and was the Nikkei’s biggest loser, down 3.9%, after reporting disappointing earnings.

In the Prime Market on Friday, 1,212.46 million shares changed hands, down from Thursday’s volume of 1,295.40 million shares. The turnover of the last trading day of the year was 2,871.66 billion yen.

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