Japan's Nikkei ends at a more than 1-month high
JAPAN’S Nikkei share average closed at a more than one-month high on Monday (Nov 6), tracking a Wall Street rally in the previous session, with chip-related stocks leading the charge.
The Nikkei index jumped 2.37 per cent to 32,708.48, its highest closing level since Sept 20. The broader Topix rose 1.64 per cent to 2,360.46.
Wall Street’s main stock indexes rallied on Friday as bond yields fell sharply after data showed signs of slowing US jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign.
“Wall Street was firm at the end of last week after weaker-than-expected economic data, which prompted investors to scoop up Japanese stocks,” said Shuutarou Yasuda, market analyst at Tokai Tokyo Research Institute.
“The next step is to see whether the Nikkei will cross the 33,000 level in the short term,” Yasuda said, adding the subdued US data shows the economy may be slowing down, which could weigh on Japanese equities.
The US Labor Department’s report showed nonfarm payrolls increased by 150,000 jobs in October, much less than the expected 180,000 increase.
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In Japan, chip-testing equipment maker Advantest jumped 8.15 per cent to give the biggest boost to the Nikkei. Chip-testing equipment maker Tokyo Electron rose 2.14 per cent.
Uniqlo-brand owner Fast Retailing rose 1.58 per cent and staffing agency Recruit Holdings jumped 7.43 per cent.
Sanrio surged 7.28 per cent after the owner of the Hello Kitty character raised its annual profit forecast.
Kawasaki Kisen fell 11.38 per cent after the shipping firm cut its annual profit forecast.
The index for shipping firms declined 5.21 per cent to become the worst performer among the 33 industry sub-indexes on the Tokyo Stock Exchange.
The banking sector slipped 2.06 per cent. REUTERS
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