TOKYO: Japan’s Nikkei share average jumped more than 2% on Monday, supported by a weaker yen and Wall Street’s gains on Friday after a stronger-than-expected jobs report suggested the world’s largest economy remained resilient.
The Nikkei closed up 1.8% at 39,332.74 in a widespread rally, after rising 2.39% earlier in the session. The broader Topix rose 1.7% to 2,739.39.
US nonfarm payrolls increased by the most in six months in September and the unemployment rate fell to 4.1%, data showed on Friday, buoying global investor sentiment.
The latest jobs report raises the chance of a soft landing, and possibly earlier than expected, said Naka Matsuzawa, chief macro strategist at Nomura Securities.
“If that happens, that’s definitely a plus for Japanese stocks, which are quite cyclical and sensitive to the global economic recovery.”
The US dollar rallied following the jobs data, sending the yen down to its lowest levels since mid-August. The softer yen boosted shares of exporters, including automaker Toyota Motor which climbed 2.3%.
Investor sentiment was also lifted after the Dow posted a record closing high on Friday and the Nasdaq ended with a more than 1% gain.
The Nikkei was edging toward the 40,000-point range, although it may be too early to try for the key level as investors await further confirmation about the US economy’s outlook, said Nomura’s Matsuzawa.
Source: Brecorder
