Japanese stocks gain as Fed move boosts risk appetite

TOKYO, Dec. 16 (Reuters) – Japanese stock rose on Thursday, led by tech stocks and heavy truck shippers, as the US Federal Reserve’s decision to end its bond purchases during the pandemic in March boosted investor risk appetite.

The Nikkei stock average (.N225) gained 1.3% to 28,827.0 at 0201 GMT, while the wider Topix (.TOPX) rose about 1% to 2,003.83.

“Investors were relieved after confirming that the Federal Reserve was in no rush to raise rates and whet their appetite for risk,” said Seiichi Suzuki, chief equity market analyst at the Tokai Tokyo Research Institute .

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“But whether that momentum is going to last until next week or after, that’s another question.”

Wall Street closed sharply higher overnight after the U.S. central bank announced it would end its bond purchases during the pandemic in March and start raising interest rates up to three times l ‘next year.

Tech-heavy stocks followed a 3.7% jump in the Philadelphia Semiconductor Index (.SOXX). Chip-related Tokyo Electron (8035.T) and Advantest (6857.T) rose 2.2% and 3.98% respectively. Robotmaker Fanuc (6954.T) gained 1.84%.

Canon (7751.T) jumped 4.91% after the office equipment maker raised its annual dividend forecast.

Marine stocks (.ISHIP.T), up 3.9%, became the first winner among the 33 sub-indexes of the exchange after the Nomura Securities analyst raised the target prices for the three major shippers .

Nippon Yusen (9101.T) gained 4.35%, Mitsui OSK Lines (9104.T) increased 3.48% and Kawasaki Kisen (9107.T) gained 3.92%.

Shinsei Bank (8303.T) lost 7.06% to post a clear gain in the previous session. The action has been volatile after online financial conglomerate SBI Holdings (8473.T) finalized a takeover bid last week for the bank to take a 47.77% stake. Read more

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Editing by Rashmi Aich

Our Standards: Thomson Reuters Trust Principles.


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