Nikkei rallies on weaker yen, Wall Street gains post-US jobs report
BY Reuters | ECONOMIC | 10/07/24 02:49 AM EDT(Updates with prices as of 0600 GMT)
By Brigid Riley
TOKYO, Oct 7 (Reuters) - 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.
U.S. 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 U.S. 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
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 U.S. economy's outlook, said Nomura's Matsuzawa.
The U.S. presidential election is also fast approaching, taking place in early November.
Financial shares rallied on Monday, supported by a rise in
Japanese government bond (JGB) yields, with Resona Holdings
Semiconductor and other major technology stocks also
performed solidly, including chip-testing equipment maker
Advantest
Among other heavyweights, Uniqlo parent Fast Retailing