Tokyo shares track Wall Street higher on upbeat U.S. economic data
TOKYO, June 30 (Reuters) – Japanese shares rose on Tuesday, as overnight Wall Street gains on stimulus hopes and better-than-expected U.S. economic data bolstered investors’ risk appetite.
The benchmark Nikkei average rose 1.76% to 22,381.22 by the midday break, while the broader Topix rose 1.21% to 1,567.90, both rebounding from the lowest close hit in the previous session.
Wall Street shares closed higher on Monday, as investors pinned hope on more economic stimulus as COVID-19 cases continued to rise.
U.S. pending home sales data showed a quick recovery in housing market activity in May, with contracts to buy previously owned homes rising by the most on record to 44.3%.
All but one of 33 sector sub-indexes on the Tokyo exchange traded higher on Tuesday, with highly cyclical shippers , iron and steel and non-ferrous metals being the top three performing sectors.
The yen softened against the dollar to 107.70, providing a tailwind for Japan’s automaker stocks, with Honda Motor Co Ltd climbing 3.03% and Nissan Motor Co Ltd adding 2.51%.
Shares of Tokyo-listed aircraft components makers tracked U.S. peers higher, after a 14% surge in Boeing Co’s stock after the company began its certification flight testing of a 737 MAX. Jamco Corp jumped 6.11%, while Toray Industries Inc advanced 3.33%.
The market showed little response to Chinese factory activity data which increased at a stronger than expected pace in June.
China’s official manufacturing Purchasing Manager’s Index expanded to 50.9 in June from 50.6 in the previous month but export orders remained weak, suggesting the economy is still battling with uncertainties amid economic recovery. (Reporting by Eimi Yamamitsu; Editing by Rashmi Aich)
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