Tokyo: Nikkei closes above key 27,000 level as energy shares rally
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JAPAN’S Nikkei share average closed above the psychologically important 27,000 level for the first time in 2 weeks on Tuesday (Jun 28), as energy shares surged, although uncertainty over the pace of US interest rate hikes limited gains.
The Nikkei climbed 0.66 per cent to close at 27,049.47, near the high for the day. That extended its winning run to 4 straight sessions.
The broader Topix jumped 1.06 per cent to 1,907.38.
US e-mini stock futures also turned positive over the course of Japan’s afternoon trade, to last trade up 0.47 per cent. The S&P 500 closed 0.3 per cent lower in a volatile session overnight.
Chinese stocks also traded early losses for decent gains, boosting Japanese market sentiment.
The Nikkei’s best performing sector was energy, up 3.8 per cent, after crude prices rebounded. No sector posted declines, but basic materials shares had the smallest gains, up 0.31 per cent.
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Of the Nikkei’s 225 component stocks, 192 rose, 29 fell and 4 were flat.
Market participants said bigger gains would be difficult due to uncertainty over how aggressive the Federal Reserve would be in tightening policy and questions about whether the global economy could avoid a recession.
“At the end of this month and the beginning of next month, there are a lot of important economic indicators due, so it is natural to be cautious about chasing equities higher,” said a trader at a domestic securities firm.
Tokyo Electric Power Company was the Nikkei’s biggest percentage riser, gaining 7.21 per cent amid a heatwave in the Japanese capital that’s set to strain energy supplies.
Oil company Inpex was another top performer, up 4.88 per cent.
Automakers outperformed, taking cheer from the recent yen weakness, which boosts the value of overseas sales. Mitsubishi Motors jumped 5.82 per cent. Alliance partner Nissan gained 3.13 per cent and Toyota rose 2.17 per cent.
Uniqlo store operator Fast Retailing boosted Nikkei the most, adding nearly 18 index points with its 0.71 per cent advance to a 7-month high. REUTERS
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