All Things Newz
Business

After tough September, Nikkei rebounds on boost from chip, energy shares


Article content

TOKYO — Japan’s Nikkei share average rose sharply on Monday, starting October on a solid footing as chip-related stocks rallied and energy shares tracked gains in crude oil prices.

The market’s mood was also buoyed by Japan Inc’s plans to boost capex this fiscal year in a quarterly Bank of Japan (BOJ) survey of corporate sentiment.

Article content

The Nikkei extended gains in the final hour of trading to finish 1.07% higher at 26,215.79, after falling as much as 1.22% earlier in the day.

The broader Topix advanced 0.63% to 1,847.58, rebounding from losses as steep as 1.12%.

Advertisement 2

Article content

Both indexes posted their worst month in September since the COVID-19 pandemic first rocked markets 2-1/2 years ago.

Although the BOJ’s “tankan” survey showed a worsening of business mood amid heated inflation, big manufacturers expect an improved environment three months from now and plan to increase capital expenditure by 21.5%.

“My impression of this tankan survey is positive,” said Kenji Abe, an equity strategist at Daiwa Securities.

It shows companies are raising prices and expect a weaker yen, which will boost exporters, signaling “some positive numbers for Japanese corporate earnings going forward,” he added.

Abe predicts the Nikkei will rise toward 27,000 this month.

The yen briefly weakened beyond 145 per dollar on Monday for the first time since Japanese authorities intervened on Sept. 22 to support the currency.

Advertisement 3

Article content

Energy was the Nikkei’s best-performing sector on Monday, climbing 2.6% as crude prices rallied amid talk of OPEC+ production cuts this week.

The Nikkei’s biggest gainer by index points was chipmaking-equipment maker Tokyo Electron, which added 57 points with a 4.59% advance. Peer Advantest followed, contributing 22 points with a 4.78% rally.

That’s after chipmaker Mimasu Semiconductor Industry Co , which is not listed on the Nikkei, jumped 12.54% on the back of a strong forecast for earnings this fiscal year.

Other notable winners included Toyota Motor, up 3.49%, Sony Group, 2.4% higher, and start-up investor SoftBank Group, rising 1.65%. (Editing by Subhranshu Sahu)

Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.



Source link

Related posts

Most actively traded companies on the Toronto Stock Exchange

Alpha Controls expands product offering to include Additel Corporation

Dubai road-toll operator Salik to sell 20% shares via IPO – document