Japan’s Nikkei hits 1-week high as retailers soar amid China hopes
TOKYO — Japan’s Nikkei index touched a one-week high on Tuesday, as retailers soared after Takashimaya raised its profit forecast and amid hopes that big-spending Chinese tourists will return.
Financials also continued to outperform following the Bank of Japan’s (BOJ) surprise decision last week to raise the policy ceiling for long-term yields.
The Nikkei share average ended the day up 0.16% at 26,447.87, although it was well below the session high of 26,620.49, which was last seen on Dec. 20 when the BOJ’s unexpected hawkish shift triggered the Nikkei’s biggest tumble in more than two months.
The broader Topix added 0.4% to 1,910.15 on Tuesday, and hit a one-week high of 1,918.25.
Japanese stocks have been under pressure from global recession worries as the Federal Reserve and European Central Bank have aggressively raised rates.
“With global central banks tightening policy, concerns about an economic slowdown continue … and while the floor is firm for stocks, those worries will keep the topside heavy,” Maki Sawada, a strategist at Nomura, said on a conference call with the media.
Department store operator Takashimaya was the Nikkei’s best performer, surging 7.14%.
China’s decision to further ease COVID-19 restrictions also stoked hopes that sales will rise from inbound tourism, market participants said.
Department store chain Isetan Mitsukoshi Holdings was the second-best performer, climbing 7.01%. Cosmetics maker Shiseido was third, jumping 6.12%.
Uniqlo store owner Fast Retailing rose the most by index points, adding 57 points to the Nikkei with its 2.06% rise.
Retail was the best performer by far among Topix sectors, up 2.53%.
It was followed by banking, which added 1.9% and reached its highest level since February 2018.
Air transport was third, up 1.8%. Japan Airlines gained 2.2% and ANA Holdings advanced 1.45%. (Reporting by Kevin Buckland; editing by Uttaresh.V and Vinay Dwivedi)
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