Japan Nikkei rebounds on bargain hunting

20 May 2022 , 07:03 PM

Japan share market finished session notably higher on Friday, 20 May 2022, as investors chased for bottom fishing across the board after the Nikkei index plummeted nearly 2% the previous day. Market risk sentiments propelled up after latest data showed that core consumer inflation in April exceeded the central banks 2% target for the first time in seven years as well as expectations for Japanese firms to come up with rosier earnings estimates. Also, boosting market sentiment was higher than expected Chinas benchmark borrowing rate cut to support its economy. China cut its five-year loan prime rate (LPR) – which influences the pricing of mortgages – by 15 basis points on Friday, a sharper reduction than expected, as authorities seek to cushion the impact of an economic slowdown. It left the one-year LPR unchanged. At closing bell, the 225-issue Nikkei Stock Average surged 336.19 points, or 1.27%, to 26,739.03. The broader Topix index of all First Section issues on the Tokyo Stock Exchange advanced 17.29 points, or 0.93%, to 1,877.37. Total 27 of 33 TSE sectoral indices advanced, with top performing issues were Marine Transportation, Precision Instruments, Nonferrous Metals, Services, Iron & Steel, Securities & Commodities Futures, and Oil & Coal Products. Shares of leisure-related Tokyo Disney Resort operator Oriental Land and department store operator Isetan Mitsukoshi Holdings both rose over 2% amid indications that the government is slowly expanding social and economic activity. Printer maker Seiko Epson soared 8.8% on share buyback news. ECONOMIC NEWS: Japans core consumer price index (CPI) accelerated 2.1% I April, well above the central banks target of 2% for the first time in seven years, as more consumer-facing businesses passed on rising import costs by raising prices for their products and services. CURRENCY NEWS: The dollar slipped through 128 yen in Tokyo trading on Friday, pressured by a drop in U.S. long-term interest rates. At 5 p.m., the dollar stood at 127.94-94 yen, down from 128.22-23 yen at the same time Thursday. Powered by Capital Market – Live News