Nikkei ends at one-week high on Wall Street rally, weaker yen

  • Reuters
  • Stock Market News
Nikkei ends at one-week high on Wall Street rally, weaker yen
Credit: © Reuters.

TOKYO, Aug 4 (Reuters) - Japanese shares ended higher on Tuesday as investor sentiment was lifted by a tech-led overnight rally on Wall Street, and a softer yen propped up exporters.

The benchmark Nikkei average .N225 gained 1.7% to 22,573.66, its highest close since July 28, while the broader Topix .TOPX jumped 2.14% to 1,555.26.

All 33 sector sub-indexes on the Tokyo exchange finished trading in positive territory, led by highly cyclical airlines .IAIRL.T , land transport .IRAIL.T and shippers .ISHIP.T .

Overnight, Wall Street rallied as strong U.S. manufacturing data and gains in tech-related stocks boosted risk appetite, with the Nasdaq settling at a record closing high.

An industry gauge released on Monday indicated U.S. manufacturing activity expanded in July at the fastest pace in more than a year. of export-oriented automobile makers got a boost from a weaker yen, which edged further away from a 4-1/2-month high hit last week against the dollar.

Mazda Motor 7261.T surged 10.59%, while Mitsubishi Motor 7211.T and Nissan Motor Co 7201.T rallied 7.18% and 6.61%, respectively.

Individual stocks with better-than-expected earnings results also provided a tailwind, prompting investors to lean towards risk-on mood, said Shuji Hosoi, senior market strategist at Daiwa Securities in Tokyo.

Suzuki Motor 7269.T rose 7.67% on better-than-expected earnings.

While the automaker posted a 1.3 billion yen operating profit, its worst quarterly performance on record, it was still better than a consensus forecast for a loss of 38 billion yen drawn from six analysts polled by Refinitiv. company Kikkoman Corp 2801.T jumped 14.11% to its daily limit on stay-at-home demand hopes, despite a 12.8% decline in April-June net profit.

Nikkei heavyweight SoftBank Group 9984.T fell 0.74% after Reuters reported, citing a person with knowledge of the matter, that the tech conglomerate under-reported income by around 40 billion yen. Sony Corp 6758.T added 4.47% ahead of earnings later in the day.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100