Roundup: Japan's Nikkei surges over 2 pct on eased inflation concerns

0 Comment(s)Print E-mail Xinhua, May 30, 2022
Adjust font size:

TOKYO, May 30 (Xinhua) -- Japan's benchmark Nikkei stock index ended more than 2 percent higher on Monday after U.S. consumer data eased concerns over excessive inflation and the U.S. Federal Reserve's continued aggressive monetary policy push.

The 225-issue Nikkei Stock Average ended up 587.75 points, or 2.19 percent, from Friday at 27,369.43, marking its highest closing level since April 21.

The broader Topix index, meanwhile, finished 35.14 points, or 1.86 percent, higher at 1,922.44.

Brokers here said that investors were heartened by data for April showing that inflation in the U.S. was slowing down, raising the prospect the U.S. Federal Reserve may look to ease its campaign of aggressive monetary tightening.

Specifically, they pointed to the most recent personal consumption expenditures (PCE) price index rising 0.2 percent.

This marked the smallest gain since November 2020, after a 0.9 percent jump in March.

The index increased 6.3 percent after a 6.6 percent leap in March for the 12 months through April, they also highlighted, adding that U.S. consumer spending rose more than expected in April, according to a separate report.

"The Nikkei gained after Wall Street's gains, which were supported by easing concerns over excessive U.S. inflation," Maki Sawada, a strategist in Nomura Securities Co.'s investment content department, was quoted as saying.

"The data spurred speculation that the Fed may not pursue an overly aggressive monetary policy," Sawada said.

Other market strategists concurred, with Shingo Ide, chief equity strategist at the NLI Research Institute, quoted as saying, "Investors were temporarily relieved by the U.S. data, as concerns that the Fed would push an aggressive monetary policy receded."

By the close of play, electric appliance, service and machinery issues comprised those that gained the most, with issues that rose outpacing those that fell by 1,551 to 253, while 32 ended the day unchanged.

Technology issues found favor following the Nasdaq index closing over 3 percent higher on Friday.

These included Advantest climbing 3.7 percent, while Taiyo Yuden leapt 3.6 percent.

Industrial robotics maker Fanuc jumped 4.7 percent, while Sony Group ended the day 5 percent higher.

Machinery makers also attracted buying, with Kubota rising 3.6 percent and Daikin Industries soaring 6.5 percent by the close.

Bucking the upward trend, shipping firms weighed, with Kawasaki Kisen Kaisha sinking 3.1 percent, while Mitsui O.S.K. Lines dropped 3.4 percent.

On the Prime Market on Monday, 1,681.74 million shares changed hands, rising from Friday's volume of 1,168.39 million shares.

The turnover on the first trading day of the week came to 4,301.85 billion yen. (33.79 billion U.S. dollars) Enditem

Follow China.org.cn on Twitter and Facebook to join the conversation.
ChinaNews App Download
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter