Nikkei jumps to 1-week high on US jobs data

Reuters Updated - June 04, 2018 at 10:23 AM.

Weaker yen lifts shares of Japanese exporters

The Nikkei soared 1.3 per cent to 22,457.58 in midmorning trade, after hitting 22,489.66, the highest point since May 28.

Japan's Nikkei share average rose to a one-week high on Monday morning, tracking Friday's Wall Street's gains after May jobs data pointed to strength in the US economy, while a weaker yen lifted the shares of Japanese exporters.

The Nikkei soared 1.3 per cent to 22,457.58 in midmorning trade, after hitting 22,489.66, the highest point since May 28.

Exporters such as automakers were bought after the dollar gained 0.15 per cent to 109.660 yen following data showing that US jobs growth gathered pace last month, adding to a string of update economic data.

“The market is relieved, after it saw some global concerns recently,” said Nobuhiko Kuramochi, a strategist at Mizuho Securities. “The Nasdaq's gains and receding geopolitical concerns are also helping investors' risk appetites.”

Toyota Motor Corp soared 3.5 per cent, Honda Motor Co surged 2.5 per cent and Nissan Motor Co advanced 1.5 per cent.

Tech shares also gained ground after US tech shares rallied on Friday. Chip-making equipment manufacturer Tokyo Electron gained 1.8 per cent, TDK Corp jumped 4.6 per cent and silicon wafer maker Shin-Etsu Chemical climbed 2.2 per cent.

Analysts also said investors were relieved after US President Donald Trump announced the resumption of plans for a summit with North Korea's leader Kim Jong Un on June 12.

Also calming investors' nerve was Italy's move to install a coalition government, removing the risk of a repeat vote dominated by debate on whether the country would quit the euro.

Japanese tea beverage drink maker Ito En jumped 6.7 per cent after saying it expects an 11.5 per cent rise in net profit of ¥14 billion for the year ending April 2019. It also said it will buy back up to 220,000 of its own shares, 0.25 per cent of those outstanding, worth up to ¥1 billion.

The broader Topix gained 1.5 per cent to 1,775.01.

Published on June 4, 2018 04:09