Japan: Nikkei starts 2022 with gains

4 Jan 2022 , 04:02 PM

Japan share market finished session sharp higher in the 2022 first trading session, Tuesday, 04 January 2022, with sentiment brightened by positive lead from Wall Street overnight and yen depreciation to upper 115-range against greenback.

At closing bell, the 225-issue Nikkei Stock Average advanced 510.08 points, or 1.77%, to 29,301.79. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 37.89 points, or 1.9%, to 2,030.22. Japanese financial markets were closed Friday and Monday due to the year-end and New Year holidays.

Shares of exporters gained on the yens weakness versus its major counterparts as overseas profits are augmented when repatriated and overall competitiveness enhanced, with Advantest and Shin-Etsu Chemical both closing around 3.7% higher, while Tokyo Electron added 3.2%

ECONOMIC NEWS: Japan Manufacturing Sector Registers Softer Improvement In December- The Japanese manufacturing sector registered a solid, albeit slightly softer improvement in operating conditions at the end of 2021, according to December PMI data. Firms reported slower expansions in both production and incoming business, though the rates of growth remained moderate overall and stronger than the average seen over the year as a whole. Notably, as demand conditions continued to improve, manufacturers reported the strongest rise in employment levels since April 2018. Yet, firms noted a softer degree of optimism as supply chain disruption and material shortages continued to hinder output and sales. At 54.3 in December, the headline au Jibun Bank Japan Manufacturing Purchasing Managers Index (PMI) – a composite single-figure indicator of manufacturing performance – dipped from 54.5 in November. This indicated a softer improvement in the health of the sector but was well above the average seen in 2021 as a whole.

CURRENCY NEWS: The Japanese yen traded at 115.74 per dollar, still weaker than levels below 114.9 seen against the greenback last week.

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