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Japan’s Nikkei jumps to over 1-month high on Wall Street’s strength – Markets

TOKYO: Japan’s Nikkei share average touched more than a one-month high on Monday, tracking a Wall Street rally in the previous session, with chip-related stocks leading the charge.

The Nikkei index rose 2.48% to 32,793,74 by 0207 GMT, its highest level since Sept. 21. The broader Topix gained 1.85% to 2,365.15.

Wall Street’s main stock indexes rallied on Friday as bond yields fell sharply after data showed signs of slowing US jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign.

“The Wall Street was firm at the end of last week after the weaker-than-expected economic data, which prompted investors to scoop up Japanese stocks,” said Shuutarou Yasuda, market analyst at Tokai Tokyo Research Institute.

“The next step is whether the Nikkei will cross the 33,000 level in the short term. But the Wall Street rose because the economic data was weaker than expected. That means the US economy may be slowing down, which could weigh on Japanese equities,” said Yasuda.

The US Labor Department’s report showed nonfarm payrolls increased by 150,000 jobs in October, much less than the expected 180,000 increase. In Japan, chip-testing equipment maker Advantest jumped 6.7% to give the biggest boost to the Nikkei.

Tokyo shares close higher on chip shares

Chip-testing equipment maker Tokyo Electron rose 2.9%.

Uniqlo-brand owner Fast Retailing rose 2.05% and staffing agency Recruit Holdings jumped 6.84%.

Sanrio surged 7.52% after the owner of the Hello Kitty character raised its annual profit forecast. Kawasaki Kisen tanked 12.6% after the shipping firm cut its annual profit forecast.

The index for shipping firms tanked 5.8% to become one of the three industry groups that fell.

The banking sector slipped 0.21%.

Source: brecorder.com

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