Japan's Nikkei at one-week high as retail traders rally

 

Japan's Nikkei rose to a one-week high after Takashimaya boosted market sentiment following a positive outlook. Travel stocks also rally on hopes of return of big spenders by Chinese tourists

Japan's Nikkei index hit a one-week high on Tuesday as retailers rallied after Takashimaya boosted its profit outlook and hopes of a return of big-spending Chinese tourists. Travel stocks also gained ground.

Financials outperformed last week following a surprise decision by the Bank of Japan (BOJ) to raise the policy range for long-term yields.

The Nikkei share average ended 0.52% higher at 26,543.47 in the morning session, after climbing to a high of 26,620.49 during the session.

The last time it was at that level was on December 20, when the BOJ raised the policy range for long-term yields in an unexpected hawkish move, prompting the Nikkei's biggest decline in more than two months.

Japanese shares were already heavily weighed down by concerns of a global recession as the Federal Reserve and European Central Bank aggressively raise rates.

Broader Topix rose 0.62% to 1,914.40 on Tuesday, and hit a one-week high of 1,918.25.

Maki Sawada, a strategist at Nomura, said on a conference call: "With global central banks tightening policy, concerns about an economic slowdown are deepening, and while the floor for stocks is firm, those concerns are nearing the top." Will be heavy." Call with the media.

Department store operator Takashimaya was the Nikkei's best performer, rising 8.2%.

Apart from the lift from its revised earnings outlook, China's decision to further ease COVID-19 restrictions stoked optimism to boost revenue from inbound tourism.

Department store chain Isetan Mitsukoshi Holdings was the second best performer, climbing 7.8%. Cosmetics maker Shiseido ranked third with a jump of 6.95%.

On Topix, however, it sank 3.01% after retailer Shimoura disappointed investors with its earnings.

Retail was the second best performer among Topix sectors with a growth of 2.61%. The best performer was air travel, with Japan Airlines gaining 3.47%. Travel Agency એચ.એસ.એસ. increased by 2.04%.

The banking sub-sector added 1.42% to reach its highest level since February 2018.