Japan's Nikkei tracks Wall Street rally amid softer yen
Updates with levels, as of 0230 GMT
By Brigid Riley
TOKYO, Aug 20 (Reuters) -Japan's Nikkei share average tracked Wall Street higher on Tuesday, shaking off the weight of the yen's recent gains, after an encouraging U.S. economic outlook continued to support risk appetite globally.
The Nikkei .N225 was up 1.7% at 38,015.87 by the midday break, recouping from previous session's losses after yen appreciation dragged on Japanese equities.
The broader Topix .TOPX was up 1% at 2,668.52.
U.S. stocks climbed on Monday, building on their largest weekly percentage gain of the year, as equities continued to rebound from a steep sell-off seen two weeks ago.
"The theme these days were concerns over a recession in the United States are lessening," said Hiroshi Namioka, chief strategist and fund manager at T&D Asset Management.
"The fact that U.S. stocks are performing solidly now is having a relatively positive effect on Japanese shares."
Recent U.S. data revived expectations of a soft landing for the world's largest economy, and market players now await Federal Reserve Chair Jerome Powell's remarks on Friday at the Jackson Hole Economic Symposium for hints on the Fed's rate path.
Japanese technology stocks tracked their U.S. peers higher to help lift the overall benchmark index, with big names such as AI-focused startup investor SoftBank Group 9984.T and chip-making equipment giant Tokyo Electron 8035.T trading in green.
Gains were widespread, with 198 of the Nikkei's 225 constituents rising against 26 decliners.
A pause in the yen's climb on Tuesday reassured investors, although analysts said the stock market remains sensitive to moves in foreign exchange. The Japanese currency was last hovering around 146.64 yen JPY= per dollar. FRX/
Among individual shares, Uniqlo parent firm and Nikkei heavyweight Fast Retailing 9983.T was up 2.7% to give the index the biggest lift.
Shares of Seven & I Holdings 3382.T slumped 8% to shed Monday's gains madeon news of a takeover proposal from Canada's Alimentation Couche-Tard ATD.TO.
Reporting by Brigid Riley; Editing by Jacqueline Wong and Sherry Jacob-Phillips
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.