Japan’s Nikkei rises after three-day drop; Nippon Yusen shines

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The Japanese Nikkei rose on Friday after three consecutive sessions of falls, following an overnight rally on Wall Street, although gains were limited as investors began selling stocks when the benchmark approached the psychological level of 27,000.

The Nikkei stock average gained 0.63% to 26,772.84 at the midday break, adding 0.13% so far in the week. The broader Topix climbed 0.41% to 1,885.23 and was on course to post a weekly gain of 0.42%.

Wall Street closed sharply higher overnight after an upbeat outlook for retail earnings and waning concerns about overly aggressive interest rate hikes from the Federal Reserve put investors in the mood for to buy.

“Wall Street’s strong finish boosted Japanese markets, but investors sold stocks as soon as the Nikkei approached the 27,000 level to post profits,” said Ikuo Mitsui, fund manager at Aizawa Securities. .

“They were concerned about the risks arising from high US inflation and its effect on interest rates.”

Nippon Yusen jumped 7.34% and was the Nikkei’s top gainer after the shipping company announced a stock split.

The shipping sector jumped 5.19% and was the biggest gainer among the Tokyo Stock Exchange’s 33 industrial sub-indices.

Inbound tourism shares rose as Japan eased border controls to attract more tourists.

Department store chains J.Front Retailing and Takashimaya rose 3.18% and 3.08% respectively.

There were 140 advances on the Nikkei index versus 80 declines.

The volume of shares traded on the main board of the Tokyo Stock Exchange was 0.62 billion, compared to an average of 1.26 billion over the past 30 days. (Reporting by Junko Fujita; Editing by Subhranshu Sahu)

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