Foreign Markets

Japan stock market finished session higher on Tuesday, 19 October 2021, as investors followed the strong performance of the Nasdaq overnight, with expectations of government fresh pandemic stimulus after the October 31 general election further strengthened buying sentiments. However, market gains capped as investors waited for upcoming corporate results for the April to September period and their full-year outlook.

At closing bell, the 225-issue Nikkei Stock Average rose 190.06 points, or 0.65%, to 29,215.52. The broader Topix index of all First Section issues on the Tokyo Stock Exchange advanced 7.34 points, or 0.36%, to 2,026.57. Trading volume turnover on the main section stood at 0.99 billion shares worth 2.44 trillion yen.

Total 15 of 33 industry groups ended lower along with the Topix, with best performing sectors were Marine Transportation (up 7.1%), Precision Instruments (up 2.3%), Information & Communication (up 1%), Electric Appliances (up 1%), and Machinery (up 0.9%), while worst performing issues included Mining (down 3.8%), Air Transportation (down 2%), Oil & Coal Products (down 1.7%), Rubber Products (down 1.3%), and Banks (down 0.8%).

Market players were eyeing the official start to campaigning today for Japan's general election on October 31, in which new Prime Minister Fumio Kishida's conservative bloc is expected to retain its majority. Investors' hopes are seen rising for economic policies going forward.

Shares of export-related companies advanced, lead by technology-oriented players, on tracking gains in US peers and weakening yen against greenback. Tokyo Electron gained 1.9% and Advantest advanced 1.8%. Sensor maker Keyence increased 2.1% and electronic component provider TDK rose 2.4%.

Sony Group climbed 0.4% after the company said an online gaming division under the wing of its U.S. unit Sony Pictures Entertainment Inc. will be sold to American mobile game company Scopely Inc. for $1 billion.

Shares of energy related players dropped on profit-taking following their recent surge. Japan Petroleum Exploration plunged 5.1% and Inpex was down 3.9%.

CURRENCY NEWS: The dollar eased to levels around 114 yen in Tokyo trading on Tuesday, reflecting a fall in U.S. interest rates. The dollar stood at 114.02-06 yen, down from 114.29-30 yen on Monday. The euro was at 132.87-87 yen, up from 132.49-50 yen.

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