Japan's Nikkei posts biggest weekly gains since September

Ajinomoto Co

08/11/2024 07:13

(Updates with prices as of 0630 GMT)
    By Brigid Riley
       TOKYO, Nov 8 (Reuters) - Japan's Nikkei share average
rose on Friday, locking in its largest weekly gains since
September, although downward revisions to corporate profits and
uncertainty about whether Republicans would win both chambers of
the U.S. Congress weighed.
    The Nikkei  .N225  closed 0.3% higher at 39,500.37, while
the broader Topix  .TOPX  ended down 0.03% at 2,742.15.
    The Nikkei secured its biggest weekly gain since late
September at 3.8%, rallying with Wall Street after former
Republican President Donald Trump's victory in the U.S.
presidential election.
    Japan's AI-focused startup investor SoftBank Group  9984.T 
added 2.9% and was among heavyweight shares to follow their U.S.
peers higher. .N 
    Uniqlo parent firm Fast Retailing  9983.T  and staffing
agency Recruit Holdings  6098.T , up 0.8% and 4.4%,
respectively, also lent support to the Nikkei.
    However, investors were still waiting to see if Republicans
manage to take control of both chambers of the U.S. Congress,
which could affect how easily Trump can enact his proposals.
    "It's unclear whether we're going to see a 'Red sweep' or a
divided government situation. So momentum for the Nikkei to
aggressively rise is not particularly strong at the moment,"
said Masahiro Ichikawa, chief market strategist at Sumitomo
Mitsui DS Asset Management.
    Meanwhile, domestic corporate earnings have also "not been
particularly good", with companies in economically sensitive
areas such as automakers posting more cautious earnings,
limiting the upside for gains on the Nikkei, he added.
    Corporate revenue releases drew out some of the biggest
winners and losers on the Nikkei.
    Electronics components maker Taiyo Yuden  6976.T  tumbled
16%, cosmetic firm Shiseido  4911.T  slipped 7%, while
electronics maker Furukawa Electric  5801.T  surged 17.4%.
    Nissan Motor  7201.T  slumped as much as 10% after
announcing on Thursday it will cut 9,000 jobs and 20% of its
global manufacturing capacity.
    It was last down 6.1%, along with Toyota  7203.T  and Honda
 7261.T , down 3.6% and 2.7%, respectively.
    A relatively stronger yen versus the U.S. dollar  JPY=EBS 
didn't help sentiment for exporter shares.

 (Reporting by Brigid Riley; Editing by Sumana Nandy and Janane
Venkatraman)
 ((brigid.riley@thomsonreuters.com;))