Japanese shares jump on strong Wall St finish, tech firms shine
28/12/2021 03:06
By Junko Fujita
TOKYO, Dec 28 (Reuters) - Japanese shares jumped on Tuesday,
with heavyweight technology stocks leading the charge, after
strong U.S. retail sales data drove Wall Street to a strong
overnight finish and eased some fears around the Omicron
COVID-19 variant.
Also powering risk sentiment, data showed a surge in Japan's
factory output in November as production in the auto sector
benefited from a recovery in global parts supplies. urn:newsml:reuters.com:*:nL4N2T70A6
The Nikkei share average .N225 rose 1% to 28,956.90 by
0220 GMT, after advancing as much as 1.6% to surpass the 29,000
level for the first time since Dec. 16.
The broader Topix .TOPX gained 0.89% to 1,995.37.
Wall Street's S&P 500 index .SPX ended at a record high in
its fourth straight day of gains, as an ecommerce-powered boom
in U.S. retail sales underscored economic strength and eased
worries from Omicron-driven flight cancellations that hit travel
stocks. .N
"Sentiment is strong with gains in the U.S. equities last
night. The Japanese market will keep the momentum if the U.S.
market remains strong," said Takatoshi Itoshima, strategist at
Pictet Asset Management.
"But most participants are short-term investors, with many
long-term investors away for the holiday season, such investors
may sell shares to gain profits if the market keeps rising."
Technology stocks led gains, with chip-making equipment
maker Tokyo Electron 8035.T rising 1.77%, air-conditioner
maker Daikin Industries 6367.T climbing 2.21% and robot maker
Fanuc 6954.T gaining 1.81%.
Precision makers .IPRCS.T gained the most among the 33
industry subindexes on the bourse, with optical glass maker Hoya
7741.T rising 1.36% and medical equipment and camera maker
Olympus 7733.T jumping 3.22%.
Kewpie 2809.T advanced 2.2% after the mayonnaise maker
raised its forecast for annual profit and dividend.
urn:newsml:reuters.com:*:nXB1KYLZ90
Casual clothing retailer Shimamura 8227.T jumped 4.6%
after posting a 25% jump in its nine-month net profit.
urn:newsml:reuters.com:*:nXB1FZ9NTE
(Reporting by Junko Fujita; Editing by Devika Syamnath)
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