Japan's Nikkei extends rally on Wall Street gains, Toyota lifts Topix

YASKAWA Electric

08/10/2021 07:37

TOKYO, Oct 8 (Reuters) - Japan's Nikkei rose for a second
straight session on Friday, tracking gains on Wall Street and as
investors scooped up bargains after sharp declines this month,
while Toyota Motor helped the Topix close higher for the first
time in 10 sessions.
    The Nikkei share average  .N225  ended 1.34% higher at
28,048.94, paring gains after a 2.3% jump in early trade as
investors awaited industry bellwether Yaskawa Electric  6506.T 
to kick off the earnings season later in the day. The broader
Topix  .TOPX  gained 1.15% to 1,961.85.    
    For the week, the Nikkei dropped 2.51%, weighed down by
concerns about China's economic slowdown and U.S. inflation
fears. For the month, the index has lost 4.77%. 
    Wall Street ended sharply higher overnight in a broad-based
rally led by Big Tech, as a truce in the debt-ceiling standoff
in the Congress relieved concerns of a possible government debt
default this month.  .N 
    "Domestic shares rose because overseas markets advanced, but
today's gain was just a rebound from sharp losses," said
Shigetoshi Kamada, general manager at the research department of
Tachibana Securities. 
    With no stock-moving catalyst within Japan, investors are
awaiting the new government's policies ahead of the Oct. 31
national lower house election, Kamada said.  urn:newsml:reuters.com:*:nL4N2R33NO
    Newly appointed Prime Minister Fumio Kishida said he would
do his utmost to lead Japan out of the COVID-19 crisis.
 urn:newsml:reuters.com:*:nL4N2R41AC
    Last week, he flagged chances of tweaking the nation's
financial income tax rate, which Kamada said has a negative
impact on the local market.  urn:newsml:reuters.com:*:nL1N2R00UR
    Automakers  .ITEQP.T  advanced as the yen weakened against
the dollar, with Toyota Motor  7203.T  jumping 2.89% and Honda
Motor  7267.T  rising 1.14%.   
    Eneos  5020.T , Japan's biggest refiner, closed lower after
rising in early trade following a report that said it would buy
Japan Renewable Energy, which operates solar and wind power
plants, for about 200 billion yen ($1.8 billion) from Goldman
Sachs  GS.N  and Singaporean sovereign wealth fund GIC.
 urn:newsml:reuters.com:*:nL1N2R30AP

 (Reporting by Junko Fujita; Editing by Subhranshu Sahu)
 ((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters
Messaging:junko.fujita.reuters.com@reuters.net;))