Economic news

Japan Shares Jump as Financials, Shippers Shine

TOKYO, Sept 24 (Reuters) - Japanese shares soared on Friday led by cyclical stocks on economic recovery hopes, as investors were optimistic that any fallout from China Evergrande’s debt woes would not spillover to other markets.

Nikkei average rose 2.06% to end at 30,248.81, its biggest jump since July 12, recovering from much of the losses it suffered earlier this week on worries about property developer Evergrande’s debt crisis. For the week, it was down 0.82%.

The broader Topix soared 2.31% to 2,090.75, marking its second biggest daily rise so far this year.

The gains were in part a catch-up to the rallies in global shares on Thursday when Japanese markets were closed for autumnal equinox holiday.

“It’s like the fog has cleared up for markets after the U.S. Federal Reserve’s meeting and Evergrande’s coupon payment,” said Yuya Fukue, trader at Rheos Capital Works.

Some Evergrande’s offshore bondholders have not received interest payment by a Thursday deadline but investors grew optimistic that its troubles will not pose systemic risks to China’s financial system and possibly to other markets.

Shippers, known for high price volatility and already sitting on a gain of more than 90% so far this quarter, led the gains with rise of 8% to a 13-year high on the back of robust shipping market.

Kawasaki Kisen soared 11.0%, while Nippon Yusen and Mitsui OSK Lines jumped 8.1% and 6.7%, respectively.

Financials also gained on hopes of higher interest income, after U.S. bond yields rose following hints from the Fed that it would soon begin tapering its bond purchases.

Insurers rose 3.4%, with Dai-ichi Life up 4.4% and T&D Holdings gaining 3.8%.

Banks also came close with 3.3% gains while MUFG rose 4.2% and SMFG advanced 3.3%. Elsewhere, Sony rose as much as 5.2% to a 21-year high, while Simplex, a system developer that was listed on Wednesday, dropped 4.9%.

(Reporting by Hideyuki Sano; Editing by Sherry Jacob-Phillips)

Source: Reuters


To leave a comment you must or Join us

More news

Back to economic news list

By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree