Roundup: Tokyo stocks close higher on eased concerns over U.S. stimulus tapering

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TOKYO, May 10 (Xinhua) -- Tokyo stocks ended higher Monday as concerns the U.S. Federal Reserve may taper its monetary easing policy eased as recent U.S. jobs data came in well-below market expectations, with sentiment also lifted by firms reporting solid earnings.

The 225-issue Nikkei Stock Average added 160.52 points, or 0.55 percent, from Friday to close the day at 29,518.34.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, gained 19.22 points, or 0.99 percent, to finish at 1,952.27.

Dealers here said that Wall Street's lead from late last week set the mood from the get-go, with the Dow Jones Index and S&P 500 marking record closes as non-farm payroll data came in far below median analysts' expectations.

The subpar jobs results eased concerns over hints previously made by the Fed regarding tapering its monetary policy amid signs of its post-pandemic revival, the prospect of which is "months too soon," according to some brokers here.

"The U.S. market gained on speculation that low interest rates will continue for a prolonged period of time, and that also lifted the Japanese market on Monday," Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management said.

The U.S. Labor Department announced Friday that the world's largest economy generated just 266,000 non-farm jobs in April, compared to market expectations of adding 978,000, traders here highlighted.

"The U.S. jobs data were welcome in the stock market as it somewhat eased tapering concerns and did not prompt major changes to the view that the economy is recovering," Masashi Samizo, senior market analyst at SMBC Trust Bank, added.

Investors were also seeking out issues whose firms' earning reports and guidances had been solid and how this factored in to the current semiconductor crunch, market strategists here said.

"On the other hand, investors are waiting to confirm the outlook of major firms, particularly they want to see the impact of chip shortage on automakers," Ichikawa said.

As for the U.S. dollar-yen pairing, the dollar was quoted at 108.91-93 yen at 5 p.m., compared with 108.53-63 yen in New York and 109.14-16 yen at 5 p.m. on Friday in Tokyo.

The euro, meanwhile, fetched 1.2147-2149 dollars and 132.30-34 yen against 1.2157-2167 dollars and 132.02-12 yen in New York and 1.2076-2078 dollars and 131.80-84 yen in late Friday afternoon trade in Tokyo.

By the close of play, iron and steel, oil and coal product, and nonferrous metal issues comprised those that advanced the most.

Automakers advanced on hopes for solid earnings set to be released this week, with Toyota advancing 1.7 percent, while Nissan accelerated 4.4 percent.

Steel makers advanced as Nippon Steel's upbeat annual profit forecast beating analysts' expectations dragged the sector higher.

Nippon Steel, thus, jumped 5.3 percent, while JFE Holdings surged 7.2 percent. Daido Steel, meanwhile, ended the day 6.1 percent higher.

Oil-linked issues also found favor on hopes for a global economic recovery lifting demand and on subsequent gains in U.S. crude oil futures.

As such, Japan Petroleum Exploration rose 2.3 percent, while Inpex finished 2.7 percent higher.

Hitachi weighed on the market, however, falling 1.6 percent, following cracks being discovered in its high-speed trains operating in Britain, resulting in the fleet's service being cancelled for safety inspections, causing lengthy disruptions and cancellations on some of Britain's most prominent high-speed lines.

Issues that rose outpaced those that fell by 1,482 to 614 on the First Section, while 95 ended the day unchanged.

On the main section on Monday, 1,126.70 million shares changed hands, dropping from Friday's volume of 1,174.04 million shares.

The turnover on the first trading day of the week came to 2,464.16 billion yen (22.65 billion U.S. dollars). Enditem

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