Nikkei Rises to Fresh 6-month High Led by Exporters, Banks
Japan's Nikkei share average rose to a fresh six-month high on Thursday after solid US growth buoyed sentiment and as the weakening yen lifted exporters, while Sumitomo Mitsui Financial Group's earnings boosted the banking sector.
Bucking the strength, Nintendo Co dived 6.3 per cent to a seven-week low after the video game maker posted a worse-than-expected operating loss in the April-June quarter.
The Nikkei rose 0.7 per cent to 15,759.66 points in mid-morning trade, the highest since Jan. 23. The Nikkei has gained for the five straight sessions.
Investors took heart after the US economy rebounded more sharply than expected in the second quarter, with gross domestic product expanding at a 4.0 per cent annualised pace.
The dollar climbed to a four-month high of 103.15 yen after the US Federal Reserve raised its assessment of the US economy while reiterating it is in no hurry to increase interest rates. The dollar last traded at 102.80 yen.
"Japanese market is benefiting from a few positive factors," said Takatoshi Itoshima, chief portfolio manager at Commons Asset Management. "The yen is weak and earnings are not bad."
He added that foreigners are particularly buying major banks and exporters.
Toyota Motor Corp rose 0.8 per cent, Nikon Corp added 1.1 per cent and Panasonic Corp gained 1.2 per cent. A weak yen lifts Japanese exporters' overseas profits when repatriated as well as their competitiveness abroad.
SMFG jumped 2.7 per cent despite a 20 per cent fall in its April-June profits, but analysts had priced in the decline in profits due to the value of stock holdings paled in comparison with the previous year, when the market rose 57 per cent.
Analysts said that the result was positive as the bank is making a solid progress towards its annual forecast.
Mizuho Financial Group and Mitsubishi UFJ Financial Group, which will report earnings after the market close on Thursday, rose 0.8 per cent and 2.2 per cent, respectively.
The broader Topix gained 0.6 per cent to 1,299.38, while the JPX-Nikkei Index 400 advanced 0.5 per cent to 11,829.10.
Copyright: Thomson Reuters 2014
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
