Japan’s Nikkei average booked a 19 percent gain this year, with shares of high-tech exporters leading a rebound rally on a weaker yen and as economic stimulus measures helped turn around the world economy.
The benchmark’s yearly climb followed a 42 percent plunge — the biggest loss in its 58-year history — last year when investors saw the global financial crisis take a heavy toll on risky assets including stocks.
On the Tokyo stock market’s final trading day of the year yesterday, the Nikkei ended down 0.9 percent, dragged lower by bankruptcy worries about Japan Airlines.
“Weakening in the yen, a gradual recovery in the economy and growing demand for companies helped buoy the market in time for the year-end,” said Naoki Koga, a senior fund manager at Toyota Asset Management.
“But domestic-demand sectors, on the other hand, fell out of favor this year due to uncertainty about the government’s policy. Financial stocks, in particular, were hurt by worries about capital raisings,” Koga said.
In moderate trade, the benchmark Nikkei closed at 10,546.44 after earlier rising to 10,707.51, its highest since Aug. 31. It has clawed back about 50 percent since hitting a 26-year closing low in March.
The broader Topix slipped 0.9 percent to 907.59.
In one encouraging technical sign for the Nikkei, its 25-day moving average edged above its 75-day moving average, a phenomenon known as the “Golden Cross” that can often indicate further rises and is regarded as a buying signal.
“We’re likely to see the market off to a strong start in the new year. But the focus in the first half will be on corporate earnings for the next business year, with government policies holding the key for their direction,” Koga said.
The dollar’s surge against the yen to a two-month high earlier helped shares of exporters as investors welcomed a weaker yen, which boosts exporters’ profits when repatriated, but many lost steam in afternoon trade.
The greenback was steady above 92 yen, led by buying on last-minute commercial needs before the end of the year.
Japanese financial markets will be closed today and tomorrow for the New Year’s holiday.
SLOW-MOVING STORM: The typhoon has started moving north, but at a very slow pace, adding uncertainty to the extent of its impact on the nation Work and classes have been canceled across the nation today because of Typhoon Krathon, with residents in the south advised to brace for winds that could reach force 17 on the Beaufort scale as the Central Weather Administration (CWA) forecast that the storm would make landfall there. Force 17 wind with speeds of 56.1 to 61.2 meters per second, the highest number on the Beaufort scale, rarely occur and could cause serious damage. Krathon could be the second typhoon to land in southwestern Taiwan, following typhoon Elsie in 1996, CWA records showed. As of 8pm yesterday, the typhoon’s center was 180km
TYPHOON DAY: Taitung, Pingtung, Tainan, Chiayi, Hualien and Kaohsiung canceled work and classes today. The storm is to start moving north this afternoon The outer rim of Typhoon Krathon made landfall in Taitung County and the Hengchun Peninsula (恆春半島) at about noon yesterday, the Central Weather Administration (CWA) said, adding that the eye of the storm was expected to hit land tomorrow. The CWA at 2:30pm yesterday issued a land alert for Krathon after issuing a sea alert on Sunday. It also expanded the scope of the sea alert to include waters north of Taiwan Strait, in addition to its south, from the Bashi Channel to the Pratas Islands (Dongsha Islands, 東沙群島). As of 6pm yesterday, the typhoon’s center was 160km south of
STILL DANGEROUS: The typhoon was expected to weaken, but it would still maintain its structure, with high winds and heavy rain, the weather agency said One person had died amid heavy winds and rain brought by Typhoon Krathon, while 70 were injured and two people were unaccounted for, the Central Emergency Operation Center said yesterday, while work and classes have been canceled nationwide today for the second day. The Hualien County Fire Department said that a man in his 70s had fallen to his death at about 11am on Tuesday while trimming a tree at his home in Shoufeng Township (壽豐). Meanwhile, the Yunlin County Fire Department received a report of a person falling into the sea at about 1pm on Tuesday, but had to suspend search-and-rescue
RULES BROKEN: The MAC warned Chinese not to say anything that would be harmful to the autonomous status of Taiwan or undermine its sovereignty A Chinese couple accused of disrupting a pro-democracy event in Taipei organized by Hong Kong residents has been deported, the National Immigration Agency said in a statement yesterday afternoon. A Chinese man, surnamed Yao (姚), and his wife were escorted by immigration officials to Taiwan Taoyuan International Airport, where they boarded a flight to China before noon yesterday, the agency said. The agency said that it had annulled the couple’s entry permits, citing alleged contraventions of the Regulations Governing the Approval of Entry of People of the Mainland Area into the Taiwan Area (大陸地區人民進入台灣地區許可辦法). The couple applied to visit a family member in
RSS