Japan Nikkei rebounds on bargain buying

19 Apr 2022 , 05:30 PM

Japan share market finished session higher on Tuesday, 19 April 2022, as investors chased for bargain hunting following recent selloff as well as fresh buying of semiconductor-linked shares.

However, market gains were capped by ongoing concerns over the Japanese yens volatility and a potentially widening monetary policy gap between Japan and the U.S. Typically, Japanese mainstay exporter firms cheer a weaker yen as it enhances price competitiveness in overseas markets and can see profits augmented when repatriated on favorable exchange rates. But, a recent surge in energy and commodity prices that resource-poor Japan has to import is hurting companies balance sheets due to the yens weakness, which is weighing on consumer spending

At closing bell, the 225-issue Nikkei Stock Average advanced 185.38 points, or 0.69%, to 26,985.09. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 15.62 points, or 0.83%, to 1,895.70.

Shares of export-related companies advanced thanks to cheaper yen against the dollar. Nissan Motor gained 3.9%, Mazda Motor jumped 4.9%, while Subaru closed 2.1% higher.

Shares of chip-oriented issues advanced, boost by tracking gains in U.S. peers overnight, with Tokyo Electron rising 2.3%, while Advantest ended the day 3% higher.

CURRENCY NEWS: The Japanese yen continued weakening against the greenback, last trading at 128.21 against the greenback.

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