Tokyo, Japan | BAZZUP | On Thursday, Japan’s benchmark Nikkei stock index increased for a fifth day in a row as optimism for the local retail sector boosted market sentiment. Financial equities, however, lagged due to ongoing worries about a U.S. recession.
To end the day at 28,156.97, the 225-issue Nikkei Stock Average increased by 74.27 points, or 0.26 percent, from Wednesday’s finish.
In contrast, the larger Topix index rose 1.01 points, or 0.05 percent, to close at 2,007.93.
Local brokers reported that the U.S. Federal Reserve’s most recent policy meeting minutes indicated continued concerns about the state of the American economy and the potential for a recession.
The most recent policy meeting minutes of the U.S. Federal Reserve showed persistent concerns about the status of the American economy and the possibility of a recession, according to local brokers.
They continued by saying that worries about a U.S. recession affected the market and that a barrage of recent dismal economic data made investors uncertain when the Fed would end its aggressive interest rate raise program, leaving room for further rate increases.
But, according to strategists, despite long-term concerns about the U.S. economy, investor morale was buoyed by expectations that Nikkei heavyweight Fast Retailing, whose shares increased 2.1 percent, will report positive profits after the end of trading.
According to Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities, “Fast Retailing drew buying on the premise that results would be cheerful, given the economy has been improving with the lifting of coronavirus restrictions.”
Aeon Co. Ltd., which declared in the year through February that its revenue had reached an all-time high while projecting a record profit projection for next year, increased 2.7 percent to become the top gainer on the Nikkei. Other shops also found favor.
Investors were closely watching the financial reports from Muji owner Ryohin Keikaku Co Ltd. and Uniqlo’s Fast Retailing after the closing bell as Shiseido, a cosmetics manufacturer, ended about 2 percent higher.
Maki Sawada, a strategist at Nomura Securities, was reported as saying that “as evidenced in the performance of retail enterprises, increased mobility of people and the revival of inbound travel are strengthening the economy.”
She observed, “It seems to be giving the Nikkei some boost.”
Nonetheless, worries about the US economy’s recession hampered banking difficulties, and a strong yen hurt exporters and high-tech problems.
Resona Holdings experienced a 1.6 percent decline among banking equities.
Tokyo Electron, a manufacturer of chip equipment, dropped 1.6 percent, and Mazda Motor fell 1.5 percent.
By the end of the game, shares in warehouse and harbor transportation services, retail, and pharmaceutical companies had made the most gains.
On the penultimate trading day of the week, the Prime Market saw a turnover of 2,406.02 trillion yen (18.06 trillion).