TOKYO, Oct 11 (Businesshala) – Japan’s Nikkei stock average rose for a third straight session on Monday, bucking its recovery from last week’s six-week low, boosted by a sharp fall in the yen as exporters , while COVID-19 declined. The transition added to hopes of an economic reopening.
The Nikkei closed 1.60% higher at 28,498.20, gaining more than 1,000 points from Wednesday’s six-week low, while the broader Topics rose 1.77% to 1,996.58, marking its second straight winning season.
New cases of coronavirus infections in Japan fell to 553 on Sunday, the lowest in nearly a year, according to public broadcaster NHK. At the height of Japan’s fifth wave in late August, the number was closer to 26,000.
“The rapid decline in coronavirus infections across the country has taken away a reason for investors to be cautious, and they are buying back shares,” said a market participant at a domestic securities firm.
Air transport was one of the best performing topics sectors with a growth of 3.59%. ANA Holdings rose 3.7% and Japan Airlines 3.5%.
Meanwhile, the yen fell to 112.75 per dollar for the first time since December 2018. A weak currency increases the value of goods sold overseas when profits are made back.
Toyota Motor rose 3.3%, Mitsubishi Motors 5.9% and Nissan Motor 5.3%. The transportation equipment sector added 3%.
Panasonic Corp advanced 6.7%, while a recovery in Chinese tech stocks helped SoftBank Group rise 4.9%.
Sony Group grew 4.4% amid a report that it could build a new chip plant with TSMC in Japan.
Yaskawa Electric Corp fell 1.9% on Friday, despite an uptick in its profit outlook. The company is the first to report results each season, and is widely viewed as a bellwether.
A market participant with a different domestic securities firm said, “On the surface the correction looks good, but it looks like the market was expecting slightly higher numbers.”
Business-support company Sansan rose 14.4% after the stock split was announced along with earnings results. (Reporting by Tokyo Markets team; Editing by Subhranshu Sahu)