Japanese shares hit 30-year high on earnings boost

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Japan share market finished the session at 30-year highs on Monday, 08 February 2021, as appetite for riskier assets supported by racking rallies on Wall Street last Friday on progress around fresh stimulus package to deal with the impact of the coronavirus pandemic and positive earnings reports.

At the closing bell, the 225-issue Nikkei Stock Average advanced 609.31 points, or 2.12%, to 29,388.60, its highest closing since Aug. 3, 1990. The broader Topix index of all First Section issues on the Tokyo Stock Exchange increased by 33 points, or 1.75%, to 1,923.95, the highest since June 5, 1991.

The Tokyo market commenced trading with firm footing on tracking last week’s gains on Wall Street after the U.S. House of Representatives gave final approval to a budget plan that included President Joe Biden’s $1.9 trillion coronavirus relief package.

Shares of steelmakers, including Kobe Steel and Nippon Steel, were among the major gainers on Monday. Both companies trimmed their annual loss forecasts amid rising demand for steel from the automotive sector. Kobe Steel’s share price jumped more than 17%, while Nippon Steel climbed 10%.

Other companies that have raised their earnings outlooks, such as packaging manufacturer Toyo Seikan Group Holdings and building materials supplier Lixil Group, also saw their share prices surge.

Economic News Reports: Japan Eco Watchers Current Condition Index Falls In January– The current conditions index of the Japanese Economy Watchers’ Survey, which measures the current situation of the economy, decreased to 31.2 in January from 34.3 in December, survey data from the Cabinet Office showed on Monday. However, a reading below 50 suggests pessimism. The outlook index that signals future activity rose to 39.9 in January from 36.1 in the previous month. In November, the reading was 47.7.

CURRENCY NEWS: The Japanese yen traded at 105.49 per dollar, having weakened last week from levels below 104.8 against the greenback.

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