Japan Market extends gain to 3rd day

Japan share market finished higher for third straight session on Tuesday, 24 January 2023, as investors took heart from rallies on Wall Street overnight and receding fears over aggressive interest rate hikes by the U.S. Federal Reserve.

The 225-issue Nikkei Stock Average index advanced 393.15 points, or 1.46%, to finish at 27,299.19, its highest close since 16 Dec. 2022. The broader Topix index of all First Section issues on the Tokyo Stock Exchange inclined 18.51 points, or 0.96%, to 1,945.38.

Total 31 of 33 industry categories of the broader Topix index advanced, with Banks, Metal Products, Precision Instruments, and Machinery sectors being notable gainers, advancing over 2%.

GS Yuasa Corp soared 3.8% after the battery maker announced a joint venture with Honda Motor to develop cutting-edge lithium-ion batteries. Shares of the latter rose 1.2%.

ECONOMIC NEWS: Japan Private Sector Expands In January- Japan's private sector returned to growth territory in January as travel subsidy programme uplifted services activity, flash survey results from S&P Global showed Tuesday. The au Jibun Bank flash composite output index advanced to 50.8 from 49.7 in the previous month. A reading above 50.0 indicates expansion. The service sector expanded further in January as the Nationwide Travel Discount Programme and the recent relaxation of COVID-19 related restrictions underpinned activity.

At 48.9, the manufacturing PMI was unchanged from December, signaling the joint-strongest contraction since October 2020. In the manufacturing sector, due to subdued demand conditions, there were sustained reductions in both output and new orders. Nonetheless, the rates of decline softened to three-month lows in both cases. Employment posted another stronger growth. Manufacturers reported that input cost inflation sank to a 17-month low and firms lifted their selling prices at the weakest pace since September 2021. They were more positive about future activity.

The services Purchasing Managers' Index rose to 52.4 in January from 51.1 in December. In services, output and new orders grew at faster rates. Input cost inflation strengthened further, while output prices rose at the softest pace in five months. Confidence among service providers weakened to the lowest in two years. For the first time in a year, employment levels decreased and at the fastest rate since May 2020.

CURRENCY NEWS: The yen stood at 130.06 against US dollar, appreciated 0.44% from previous day close of 130.66, after trading in the range between 129.74-130.73.

Powered by Capital Market - Live News