Banks and Airline Stocks Help Nikkei to Profit

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The Tokyo stock exchange closed slightly higher on Wednesday, led by Japanese banks and aviation stocks. Then, investors took to the higher closing positions on Wall Street, where better-than-expected corporate results bolstered the mood.

 

The other major stock markets in Asia showed a mixed picture. The International Monetary Fund (IMF) lowered its growth forecast for the region this year to 6.5 percent. Previously, a growth of 7.6 percent was expected.

The leading Nikkei in Tokyo eventually ended 0.1 percent in the plus at 29,255.55 points. Bank stocks benefited from the rise in US 10-year bond yields, which reached their highest level in four months. Japanese airlines and railway companies were also on the rise in hopes of a further recovery from the corona pandemic after a sharp decline in the number of corona infections in Japan. Tech investor SoftBank, a heavyweight in the index, gained 4 percent.

On a macroeconomic level, Japanese exports rose by 13 percent year-on-year in September. That was a little more than expected. However, exports fell sharply from the 26.2 percent growth in August and reached the lowest level since February this year. Car exports, in particular, fell sharply due to production cuts by the major car manufacturers due to global chip shortages.

The main index in Shanghai was 0.1 percent lower in the interim after the decision by the Chinese central bank to leave the interest rates on one-year and five-year loans unchanged. The Hang Seng index in Hong Kong gained more than 1 percent thanks to strong price gains at the Chinese tech companies Alibaba and Tencent.

Chinese real estate developers were mostly down on lingering concerns about the struggling real estate group Evergrande. It also emerged that the prices of new homes in China did not rise in September for the first time since February 2020.

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