Thursday, December 1

Japanese shares end higher; caution ahead of Fed minutes limit gains


Article content

TOKYO — Japanese shares ended higher on Tuesday, as the yen’s weakness against the US dollar raised prospects of a better outlook for domestic manufacturers, although caution ahead of the release of the Federal Reserve’s minutes of policy meeting limited gains.

The Nikkei share average rose 0.61% to close at 28,115. 74, while the broader Topix climbed 1.12% 1,994.75.

Article content

“There were no specific market-moving cues but investors liked the yen’s weakness. Investors probably bought back stocks to cover their short positions ahead of a market holiday tomorrow as the yen may weaken further after comments from the Federal Reserve,” said Yutaka Miura senior technical analyst at Mizuho Securities.

Article content

“But US equities could fall if the markets find any hawkish remarks from Fed officials, which may trigger a sell-off in Japanese futures on Friday.”

Japanese markets will be closed on Wednesday for a local holiday, while the US markets will be closed for the Thanksgiving holiday on Thursday.

The Fed’s latest meeting’s minutes is due in this holiday-shortened week.

The dollar advanced against most major currencies overnight, recouping recent losses, as traders shunned riskier currencies over concerns about the global economic outlook from the COVID-19 curbs in China.

In Japan, Shionogi & Co jumped 2.77% after the Yomiuri newspaper reported that the country’s regulatory agency had compiled a report confirming the possible efficacy of the drugmaker’s COVID-19 drug.

All the 33 industry sub-indexes on the Tokyo Stock Exchange rose, with the utility sector, leading gains with a 2.24% jump. Insurers rose 2.07%.

Heavyweight chip-related Advantest fell 1.43%, while Tokyo Electron pared early losses to end 0.09% higher.

(Reporting by Junko Fujita; editing by Uttaresh.V and Rashmi Aich)



financialpost.com

Leave a Reply

Your email address will not be published. Required fields are marked *