Japan Market gains 0.8%

Japan share market finished choppy session in positive territory on Tuesday, 10 January 2023, on the back of optimism over China's economic recovery following the country's border reopening and expectations of slower rate hikes by the U.S. Federal Reserve.

However, market gains capped on caution ahead of US Fed Chair Jeremy Powell's speech at a central bank conference in Stockholm later in the day and the U.S. December inflation report due on Thursday for more clues on the rate-hike trajectory.

The 225-issue Nikkei Stock Average index advanced 1201.71 points, or 0.78%, to finish at 26,175.56. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 5.12 points, or 0.27%, to 1,880.88.

Total 19 of 33 TSE sectors inclined along with broader Topix index, with iron & steel sector was top performer, adding 2.82%, followed by machinery (up 2%), marine transportation (up 2%), glass & ceramics products (up 1.74%), nonferrous metals (up 1.6%), and mining (up 1.24%) sectors, while electric power & gas sector was worst performer, falling 1.72%, followed by fishery agriculture & forestry (down 0.9%) and services (down 0.85%) sectors.

Eisai shares was up 4.8%, after the US Food and Drug Administration approved its Alzheimer's drug lecanemab, developed in partnership with Biogen Inc, for patients in the earliest stages of the disease.

SoftBank Group climbed 2.4% after a report said British Prime Minister Rishi Sunak has revived talks with the Japanese firm regarding a London listing for chip designer Arm Ltd.

ECONOMIC NEWS: Inflation in Japan's capital Tokyo hit 4% for the first time in four decades at the end of 2022, lifting speculation over a shift in the Bank of Japan's massive monetary easing stance. Separate data showed an unexpected fall in overall household spending in November, driven by rising consumer prices.

The consumer price index, or CPI, excluding fresh food rose 4.0% in December, faster than the 3.6% increase in November, the Ministry of Internal Affairs and Communications reported. Overall consumer price inflation also hit 4.0%, up from 3.7% a month ago.

Another report from the ministry showed that household spending decreased 1.2% on a yearly basis in November, reversing the 1.2% increase seen a month ago and confounded the expected growth of 0.5%. Month-on-month, household spending decreased 0.9%, in contrast to the 1.1% increase seen in October.

CURRENCY NEWS: The yen was around upper-131 zone against the U.S. dollar in Asian trade on Tuesday. The yen stood at 131.84 against US dollar, down by 0.02% from previous day close of 131.88, after trading in the range between 131.40-132.29.

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