Japanese stocks rise sharply, fears of excessive tightening in US retreat-Nikkei average rises above 500 yen – Bloomberg

The Tokyo stock market rose, with the TOPIX and Nikkei Stock Averages both rising above 2% at one point. The Institute for Supply Management (ISM) manufacturing index has fallen more than expected, and fears of the US economy tightening too much have receded. Export-related items such as electronics and automobiles, as well as high crude oil prices, are leading buyers in the mining industry and trading companies. Industries related to domestic demand such as retail, real estate, and construction also rose, and all 33 industries on the Tokyo Stock Exchange were high.

  • TOPIX increased by 38.79 points (2.1%) since the previous day to 1886.37 – as of 9:07 am
    • An increase of over 2% since September 8
  • The Nikkei Stock Average climbed 484.05 yen (1.9%) to 26,699.84 yen.
    • Appreciation 542 yen temporarily, the increase is more than 500 yen

The views of market participants

Hideyuki Ishiguro Senior Strategist at Nomura Asset Management

  • Judging by the movement of risk assets, the US economy will slow further, and weaker demand will lead to a slower pace of US interest rate hikes. Domestic and foreign stock markets will confirm once economic indicators and corporate earnings have been confirmed
  • In the United States, stock prices have fallen due to increases in interest rates, which have had a negative impact on wealth on household budgets.
  • Corporate earnings in the US are likely to exceed levels already revised down by analysts, and Japanese earnings are expected to be firm, supported by the weaker yen. Stock prices are Japan and the United States are in a low price range, so there is a possibility of a reassessment and purchase from a performance perspective.

TSE 33 industries

maximum rate of increase Electricity and gas, wholesale, textiles, other finance, mining, precision equipment
High discount rate

background

  • US ISM Manufacturing Index out 2 yearsLows – orders shrinking again
  • New York crude oil futures on the 3rd rose 5.2% to 83.63 dollars a barrel, the sharpest peak since July – Possibility of production cuts by OPEC plus
  • US stocks fell to their lowest since July on Monday10-year US Treasury yield falls 19 basis points to 3.64%
  • North KoreaAirborne ballistic missiles, civil defense information – Hokkaido and Aomori

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