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Tokyo, Japan | Xinhua | Japan’s benchmark Nikkei stock index rose for a fifth straight day on Thursday as hopes for the domestic retail sector lifted the market mood, although financial stocks dragged on continued concerns over a U.S. recession.
The 225-issue Nikkei Stock Average gained 74.27 points, or 0.26 percent, from Wednesday to close the day at 28,156.97.
The broader Topix index, meanwhile, added 1.01 points, or 0.05 percent, to finish at 2,007.93.
Local brokers said that concerns remained over the health of the U.S. economy and the possibility of a recession, as indicated in the latest policy meetings’ minutes of the U.S. Federal Reserve.
They added that concerns over a U.S. recession weighed on the market, with investors unsure as to the timing of the Fed’s exit from its aggressive interest rate hike policy, with further rate hikes possible, due to a slew of downbeat economic data recently.
Strategists said, however, despite the long-term economic concerns related to the U.S., investor sentiment was lifted by hopes that Nikkei’s heavyweight Fast Retailing, the shares of which gained 2.1 percent, will post upbeat earnings after the close of markets.
“Fast Retailing drew buying on the assumption that figures would be upbeat, as the economy has been recovering with the removal of coronavirus restrictions,” Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
Other retailers also found favor, with Aeon Co. Ltd. climbing 2.7 percent to become the top gainer on the Nikkei after it announced in the year through February that its revenue reached an all-time high while forecasting a record profit outlook for next year.
Cosmetics maker Shiseido, meanwhile, ended almost 2 percent higher, with investors keenly eyeing the earnings’ results after the closing bell from Muji owner Ryohin Keikaku Co Ltd., as well as Uniqlo’s Fast Retailing.
“As seen in the results of retail companies, increased mobility of people and the recovery of inbound travel are boosting the economy,” Maki Sawada, a strategist at Nomura Securities, was quoted as saying.
“That seems to be providing some support for the Nikkei,” she said.
But U.S. recession concerns hurt financial issues, while a firm yen impacted exporters and high-technology issues.
Among financial stocks, Resona Holdings dropped 1.6 percent.
Chip equipment maker Tokyo Electron lost 1.6 percent while Mazda Motor skidded down 1.5 percent.
By the close of play, warehousing and harbor transportation service, retail and pharmaceutical shares comprised those that gained the most.
The turnover on the Prime Market on the penultimate trading day of the week came to 2,406.02 billion yen (18.06 billion U.S. dollars). ■
