Nikkei posts ninth straight weekly gain after special quotation price gets fixed

JAPAN’S Nikkei share average rose sharply on Friday (Jun 9) and marked its ninth straight weekly rally, as fixing of the special quotation price relieved investors.

The Nikkei index jumped 1.97 per cent to close at 32,265.17 in its sharpest daily gain since Monday. The index rose 2.35 per cent for the week, erasing a nearly 4 per cent loss in the past two days from a 33-year high scaled on Wednesday.

The broader Topix advanced 1.50 per cent to 2,224.32 and rose 1.9 per cent for the week.

“The Nikkei fell in two-straight sessions and that made investors feel comfortable in buying stocks. There is a possibility that the index will rise further next week,” said Jun Morita, general manager of the research department at Chibagin Asset Management.

“Also, the special quotation was fixed. The market fell in the run up to the calculation, and the quotation was relatively low.”

The closely watched settlement price, known in Japan as special quotation (SQ), was set at 32,018.38. It is calculated from the opening prices of the 225 shares in the Nikkei share average on the second Friday of the month. They are used to set values on index options and futures.

Uniqlo brand owner Fast Retailing jumped 4.6 per cent and was the biggest boost to the Nikkei. Air-conditioning maker Daikin Industries rose 3.83 per cent. Chip-testing equipment maker Advantest gained 2.88 per cent.

Trading firm Marubeni jumped 4.62 per cent to become the top gainer on the Nikkei. Its peer Sojitz advanced 4.57 per cent.

That pushed the trading firm sector up 3.19 per cent to become the top performer among the 33 industry sub-indexes of the Tokyo Stock Exchange. The drug sector advanced 2.2 per cent.

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Industrial machinery maker Mitsui E&S fell 1.81 per cent to become the biggest loser on the Nikkei.

Of the Nikkei components, 195 stocks rose and 29 fell, with one trading flat. REUTERS