Japan’s Nikkei share average marched higher on Thursday morning trading action after declining to a one-week low on the previous day as strong machinery data aided sentiment as far as metal shares, which stayed pressured on persistent concern about Chinese demand.
Japan’s core machinery orders rallied in January at the most rapid pace in almost a year, bouncing back from a record pullback in the previous month.
Knock-on sentiment supported the Nikkei bolstered 0.2 percent to 14,865.90. On Wednesday, the index sagged down its most in a month, by 2.6 percent, to its weakest closing level since March 4.
Investors are picking up shares battered by Wednesday’s decline, but advances may be limited because of caution over Chinese economic development as well as the effect of an April sales tax bolster on Japan’s economy, traders said.
There is also concern that momentum sparked by administration reflationary policies is slowing, as shares of banks and real estate developers – the policies’ primary beneficiaries – have risen less than the benchmark index, traders said.
“Short-term macro funds are selling reflationary stocks,” said a senior portfolio manager at a foreign asset management firm. “Japan’s fundamentals are not bad, but they (reflationary
stocks) are the ones who contributed to the rally last year and they (investors) want to take profits as macro data have been disappointing.”
Recent U.S. data have also been unsatisfactory, regardless of the impact of heavy snow, and concern about slowing Chinese demand has pulled commodity financial values lower, the portfolio manager said.
“Investors want to see if Japan’s growth is intact before they start chasing the market higher.”
The real estate sector has relinquished 18 percent since the starting of the year, while the banking sector has dropped 13 percent. Over the same time, the Nikkei has shed 8.7 percent.
On Thursday, advancers included exporters and index heavyweight stocks. Sony Corp rallied 1.0 percent, Honda Motor Co recorded a 0.6 percent increase and SoftBank Corp. bolstered 1.0 percent.
Metal shares, hit heavily on Wednesday, were kept weak by China concerns. Sumitomo Metal Mining Co was flat while Dowa Holdings Co shed 0.6 percent.
Chinese industrial production and retail sales data for January and February will therefore draw investor attention around 0530 GMT.
The broader Topix index inched up 0.2 percent to 1,209.42.
The JPX-Nikkei Index 400, a gauge comprising companies with high return on equity and strong corporate governance, boosted 0.2 percent to 10,942.17.
The material has been provided by InstaForex Company – www.instaforex.com
Japan’s Nikkei share average marched higher on Thursday morning trading action after declining to a one-week low on the previous day as strong machinery data aided sentiment as far as metal shares, which stayed pressured on persistent concern about Chinese demand.
Japan’s core machinery orders rallied in January at the most rapid pace in almost a year, bouncing back from a record pullback in the previous month.
Knock-on sentiment supported the Nikkei bolstered 0.2 percent to 14,865.90. On Wednesday, the index sagged down its most in a month, by 2.6 percent, to its weakest closing level since March 4.
Investors are picking up shares battered by Wednesday’s decline, but advances may be limited because of caution over Chinese economic development as well as the effect of an April sales tax bolster on Japan’s economy, traders said.
There is also concern that momentum sparked by administration reflationary policies is slowing, as shares of banks and real estate developers – the policies’ primary beneficiaries – have risen less than the benchmark index, traders said.
“Short-term macro funds are selling reflationary stocks,” said a senior portfolio manager at a foreign asset management firm. “Japan’s fundamentals are not bad, but they (reflationary
stocks) are the ones who contributed to the rally last year and they (investors) want to take profits as macro data have been disappointing.”
Recent U.S. data have also been unsatisfactory, regardless of the impact of heavy snow, and concern about slowing Chinese demand has pulled commodity financial values lower, the portfolio manager said.
“Investors want to see if Japan’s growth is intact before they start chasing the market higher.”
The real estate sector has relinquished 18 percent since the starting of the year, while the banking sector has dropped 13 percent. Over the same time, the Nikkei has shed 8.7 percent.
On Thursday, advancers included exporters and index heavyweight stocks. Sony Corp rallied 1.0 percent, Honda Motor Co recorded a 0.6 percent increase and SoftBank Corp. bolstered 1.0 percent.
Metal shares, hit heavily on Wednesday, were kept weak by China concerns. Sumitomo Metal Mining Co was flat while Dowa Holdings Co shed 0.6 percent.
Chinese industrial production and retail sales data for January and February will therefore draw investor attention around 0530 GMT.
The broader Topix index inched up 0.2 percent to 1,209.42.
The JPX-Nikkei Index 400, a gauge comprising companies with high return on equity and strong corporate governance, boosted 0.2 percent to 10,942.17.
The material has been provided by InstaForex Company – www.instaforex.com
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