Nikkei inches up on U.S. stimulus hopes as trade resumes after outage

  • Reuters
  • Stock Market News
Nikkei inches up on U.S. stimulus hopes as trade resumes after outage
Credit: © Reuters.

TOKYO, Oct 2 (Reuters) - Japanese shares inched up on Friday with investors clinging to hopes for more U.S. fiscal stimulus as the Tokyo Stock Exchange resumed trading after a full-day of system outage the previous day.

Nikkei share average .N225 edged up 0.15% by midday to 23,219.62. The broader Topix .TOPX ended the morning session 0.03% lower at 1,624.96, giving up earlier gains.

The small gains in Nikkei followed Wall Street's extended rally as investors pinned their hopes on the progress over stimulus talks in Washington as economic recovery from the pandemic-induced recession appears to lose momentum. .N

The market took the impact of Thursday's outage in its stride, with traders relieved that the system was recovered after an unprecedented one-day shutdown due to technical troubles. market is driven more by gains in U.S. shares than by the system troubles at the TSE. The glitch is not affecting the market overall," said Maki Sawada, equity strategist at Nomura Securities.

By late morning trade, the market's turnover had reached 1.20 trillion yen ($11.37 billion), a little higher than usual.

Shares of Japan Exchange Group 8697.T , the parent company of Tokyo Stock Exchange, fell 1.6% while Fujitsu 6702.T , developer of the exchange's system, lost 2.2%.

Department store operators, one of the worst-hit segments this year, extended their strong recovery after a leading firm, J.Front Retailing 3086.T , upgraded its earnings forecast earlier this week.

Isetan Mitsukoshi 3099.T gained 7.7% while Takashimaya 8233.T rose 6.9% and J.Front Retailing added 7.1% to log a weekly gain of almost 22%.

Nishimatsuya 7545.T , operator of infant goods stores, rose 6.8% to a 4-year high, after it too raised its earnings forecast.

Other cyclical value shares, including carmakers, were also in demand. Nissan Motor 7201.T rose 2.4% while Honda Motor 7267.T gained 2.1%.

In contrast, investors rotated out of this year's winners such as drugmakers.

Daiichi Sankyo 4568.T lost 3.5% while Shionogi 4507.T fell 3.3%.

($1 = 105.58 yen)

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