Tokyo: Nikkei gains for 3rd day on weaker yen, economic reopening hopes
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[TOKYO] Japan's Nikkei share average rose for a 3rd straight session on Monday, extending its recovery from a six-week low marked last week, as a sharp decline in the yen boosted exporters while a drop in Covid-19 infections added to economic reopening hopes.
The Nikkei closed 1.60 per cent higher at 28,498.20, gaining more than 1,000 points from Wednesday's six-week low, while the broader Topix rose 1.77 per cent to 1,996.58, marking its second straight winning session.
New cases of coronavirus infections in Japan fell to 553 on Sunday, the lowest in almost a year, according to public broadcaster NHK. At the height of Japan's 5th wave in late August, the number was close to 26,000.
"The rapid drop in coronavirus infections nationwide has taken away one reason for investors to be cautious, and they are buying back shares," said a market participant at a domestic securities firm.
Air transport was among the best performing Topix sectors, rising 3.59 per cent. ANA Holdings rose 3.7 per cent and Japan Airlines added 3.5 per cent.
Meanwhile, the yen slid as far as 112.75 per dollar for the first time since December 2018. A weaker currency increases the value of goods sold overseas when profits are repatriated.
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Toyota Motor rose 3.3 per cent, while Mitsubishi Motors rallied 5.9 per cent and Nissan Motor gained 5.3 per cent. The transport equipment sector added 3 per cent.
Panasonic advanced 6.7 per cent, while a recovery in Chinese tech shares helped SoftBank Group rise 4.9 per cent.
Sony Group rose 4.4 per cent amid a report that it might build a new chip plant with TSMC in Japan.
Yaskawa Electric slid 1.9 per cent, despite an upward revision to its profit outlook on Friday. The company is among the first to report results every season, and is widely viewed as a bellwether.
"On the surface the revision looks good, but it seems the market was hoping for a bit higher number," said a market participant with a separate domestic securities firm.
Business-support company Sansan surged 14.4 per cent after announcing a stock split along with earnings results.
REUTERS
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