Cheaper Yen and Drop in Corona Cases Push Nikkei

0 25,856

On the stock exchange in Tokyo, the advance continued on Monday. A sharp fall in the value of the Japanese yen resulted in solid gains for the major exporters.

 

A sharp decline in the number of corona infections in the country to the lowest level in almost a year also fueled optimism among investors. However, investors also processed last Friday’s disappointing US report.

Japan’s main index, the Nikkei 225, ended 1.6 percent higher at 28,498.20 points. It was the third winning day in a row. Automakers Toyota and Mitsubishi, which generate a lot of sales from abroad, benefited from the cheaper yen and rose around 3 percent. Competitor Nissan won 5 percent.

The car manufacturer wants to spend more than 1 billion euros on making its factories worldwide more sustainable. The factories are also being made suitable for the production of electric cars. Sony climbed 4 percent after reports that the electronics group may build a new chip factory in Japan with Taiwanese chip maker TSMC.

Japanese airlines ANA Holdings and Japan Airlines were also among the strongest climbers with more than 3 percent gains. The number of new corona infections in Japan stood at 553 on Sunday. At the peak of the fifth corona wave at the end of August, about 26,000 new cases were added daily. The airlines also did good business in Singapore thanks to a further relaxation of the corona measures for vaccinated travellers from more countries, including the Netherlands.

The Hang Seng index in Hong Kong gained 2 percent in the meantime, led by Chinese tech companies such as Tencent and Alibaba. Meituan rose more than 8 percent. The Chinese regulator fined the Chinese meal delivery company of approximately 460 million euros for monopoly practices. However, the fine was much lower than investors had feared. In April, the Chinese online store Alibaba was fined around 2.4 billion euros.

Trading in Evergrande shares was still on hold. A new payment term for bonds of the struggling Chinese real estate group expires on Monday. In recent weeks, the company has already missed two loan interest payments.

Leave A Reply