SYDNEY, July 2 (Reuters) - Japanese stocks rose on Thursday, tracking overnight gains in Wall Street, on signs that the global economy was emerging from the coronavirus lockdown, although many investors stayed on the sidelines ahead of the U.S. payrolls data later in the day.
The benchmark Nikkei average .N225 advanced 0.65% to 22,266.23 by the midday break, clawing back from a 0.75% drop on Wednesday, with cyclical stocks leading the gains.
Soichiro Matsumoto, chief investment officer Japan at Credit Suisse (SIX: CSGN ), called the current Nikkei's level of around 22,000 "a pretty good level" for many institutional investors. He expects Tokyo shares to remain range-bound, saying there's not much upside left in the medium term.
On Wall Street, the S&P 500 .SPX and Nasdaq .IXIC indexes ended higher on Wednesday as increasing optimism for a safe and effective COVID-19 vaccine eased concerns that another round of business lockdowns was likely. .N
The U.S. manufacturing activity rebounded more than expected in June, while similar surveys from China, Germany and France all pointed to a recovery in factory activity. broader Topix .TOPX gained 0.77% to 1,550.40 by the midday recess, with all but four of the 33 sector sub-indexes on the Tokyo exchange trading higher.
Toyota Motor Corp 7203.T advanced 2.3%, one day after U.S. electric carmaker Tesla Inc TSLA.O overtook the Japanese carmaker to become the highest-valued automaker in terms of market capitalization. the overall trend, the index of Mothers start-up market .MTHR slumped 5.2%, hitting its lowest level since May 28, with biotech AnGes Inc 4563.T nose-diving as much as 16%. stocks outperformed the small-cap shares, with the Topix Large index .TOPXL rising 0.83% and the Topix Small .TOPXS falling 0.23%.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.