Nikkei rises for 3rd day, helped by cyclical stocks

Nomura Holdings jumped 2.4 per cent and Mitsubishi UFJ Financial Group gained 1.5 per cent. NSEBSEHitachiLoading data…





    ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIES TOKYO: Japanese stocks rose for a third day to a one-month high on Wednesday after Wall Street strengthened and the yen pulled back, helping buoy cyclicals such as exporters and banks.

    The Nikkei ended up 0.5 per cent at 19,865.82 points, its highest close since Aug. 8.

    The S&P 500, Dow Jones industrials and Nasdaq Composite clocked record closes, with investors drawn to riskier assets as concerns over US-North Korea tensions eased and the financial impact from Hurricane Irma appeared less severe than initially feared.

    In Tokyo, brokerage and banking sectors outperformed.

    Nomura Holdings jumped 2.4 per cent and Mitsubishi UFJ Financial Group gained 1.5 per cent.

    With the dollar hitting an almost two-week high of 110.290 yen, exporters including makers of machinery, electronics products and automobiles attracted buying.

    Pump manufacturer Ebara Corp rose 1.3 per cent, agricultural equipment maker Kubota Corp added 1.7 per cent, Panasonic Corp surged 4.5 per cent and Nissan Motor Co rose 1.2 per cent.

    “The risk mood seems to have come back as US markets were rallying,” said Hikaru Sato, a senior technical analyst at Daiwa Securities.

    Still, investors are cautious about the medium-term growth outlook for the United States, especially as they try to gauge Hurricane Harvey’s impact on the economy.

    “We need to watch upcoming US economic data and its impact on the stock market,” Sato said.
    Hitachi Ltd jumped 3.3 pct to a level not seen since August 2015 after UBS Securities raised its rating on the stock to ‘buy’ from ‘neutral’, saying that losses related to overseas projects were less than the market had expected.

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