Japan's Nikkei rises on bargain hunt, US debt ceiling bill

Daikin Industries

01/06/2023 04:05

TOKYO, June 1 (Reuters) - Japan's Nikkei share average
changed course to trade higher on Thursday as investors scooped
up stocks after losses in the previous session and also cheered
U.S. lawmakers' vote to approve a bill in a move to avoid a
crippling default.
    The Nikkei index  .N225  recouped early losses to climb
0.29% to 30,976,43 by the midday break. The index jumped close
to 1% after the news that a divided U.S. House of
Representatives passed a bill to suspend the $31.4 trillion debt
ceiling.
    The broader Topix  .TOPX  was up 0.43% at 2,139.89. 
    "The market fell yesterday and that was due to the
adjustment of portfolios at the end of the month. Today
investors scooped up shares at a dent," said Shoichi Arisawa,
general manager of the investment research department at
IwaiCosmo Securities.
    "Also the passing of the debt ceiling bill gave a relief to
investors."
    In the previous session, the Nikkei index snapped a four-day
winning streak and dropped most since April 5 on profit-booking.
    Among individual stocks, technology investor SoftBank Group
 9984.T  jumped 4.93%. Air-conditioning maker Daikin Industries
 6367.T  rose 2.58% and chip-making equipment maker Tokyo
Electron  8035.T  gained 1.7%.
    Toyota Motor  7203.T  rose 1.7% after the automaker said it
would invest $2.1 billion more in its new U.S. battery plant in
North Carolina, as the Japanese automaker deepens efforts to tap
rising demand for electric vehicles.
    Japan Steel Works  5631.T  rose 3.73% to become the top
gainer in the Nikkei after SMBC Nikko Securities raised a target
price for the machinery maker. 
    Of the Nikkei components, 116 stocks rose and 100 declined
and nine were flat. 
    
    

 (Reporting by Junko Fujita; Editing by Sherry Jacob-Phillips)
 ((junko.fujita@thomsonreuters.com;))