Nikkei Rises, Tech and Energy Shares Lead Gains
Japan's Nikkei index rose 0.9% on Monday, driven by gains in technology and energy shares. Positive sentiment also emerged from a weaker yen, which boosted the earnings outlook for export companies. NEC shares jumped 2.7%, while energy giant Inpex rose 2.3%, helping lift the index to 50,725.80.
The weaker yen also contributed to the gains, with USD/JPY rising to 153.90 from 153.47 at the close of trading on Friday. A weaker yen typically benefits Japanese exporters because it increases the value of overseas profits when converted into yen. However, not all sectors enjoyed this gain. Honda Motor shares fell sharply 3.8% after the company cut its fiscal year profit forecast.
Investors are also focused on quarterly earnings reports due this week. Several major names, such as Sumitomo Metal Mining and Subaru Corp., are scheduled to announce their results today. The market hopes the report will provide new clues regarding the strength of Japan's economic recovery amid a weakening currency and global uncertainty.
With the Japanese stock market continuing to climb, analysts believe investor optimism remains strong, particularly in the technology and energy sectors, which are expected to post solid profit growth. However, volatility remains possible as the market awaits further economic data and earnings reports to confirm the direction of the Nikkei index's next move. (asd)
Source: Newsmaker.id
