By Sam Byford
Sep 9 (Reuters) – Japanese stocks rose on Friday, building on a rally the day before, even as investors digested hawkish remarks from policymakers who firmly laid down their view of aggressive rate hikes to rein in the global economy. ‘inflation.
Japan’s Nikkei stock closed up 0.53% at 28,214.75. The benchmark started trading up 0.5% and remained above the psychological barrier of 28,000 throughout the day.
The Nikkei gained 2.04% in total this week, mostly due to a 2.315% rally on Thursday. The index remained stable the first two days of the week and lost 0.71% on Wednesday.
The broader Topix index rose 0.40% to end the week up 1.83%.
“U.S. stock futures were strong after hours, and there was no crash,” said a market participant at a national securities firm, despite the previous day’s rally indicating possible position adjustments before the weekend.
Federal Reserve Chairman Jerome Powell said on Thursday that the US central bank was “strongly committed” to controlling inflation, while the European Central Bank also signaled further hikes to fight inflation.
Of the 225 constituents of the Nikkei, 176 posted gains, 46 fell and three traded flat on Friday.
All sectors of the Nikkei increased overall. Healthcare was one of the best performing sectors, following a strong showing on Wall Street overnight.
Online healthcare company M3 Inc gained 2.74% and was the second largest contributor to the Nikkei behind semiconductor company Tokyo Electron. Pharmaceutical company Shionogi & Co Ltd rose 2.78% and Chugai Pharmaceutical Co Ltd rose 1.72%.
Air conditioner maker Daikin Industries Ltd was the biggest laggard in the Nikkei with a 0.9% decline.
Passenger transport companies were among the worst performers. East Japan Railway Co posted the biggest individual loss at 1.18%, while Central Japan Railway Co and airline ANA Holdings Inc followed closely behind, both down 0.98%. (Reporting by Sam Byford and the Tokyo Markets Team; Editing by Krishna Chandra Eluri)