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(Bloomberg) — Japanese stocks swung between gains and losses as domestic demand-oriented shares including rail and telecom companies climbed, while exporters fell as the yen held its strength.
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The Topix index rose as much as 0.5% after falling 1.5%, with about three stocks gaining for each one that declined. Information companies and railway firms were among the biggest contributors after data showed Japanese workers’ real wages rose for a second consecutive month.
Exporters including automakers fell as the yen held a two-day gain versus the dollar on speculation the data will keep the Bank of Japan on track for another potential rate hike this year. Bets that the Federal Reserve will cut interest rates later this month boosted Japan’s currency more than 1% overnight.
“Investors probably don’t see the situation as being bad enough to sell,” said Hiroshi Matsumoto, a senior client portfolio manager at Pictet Asset Management Japan Ltd. “The Japanese economy is not in bad shape, and there is nothing to warrant a sharp decline for the second day in a row.”
The Nikkei 225 Stock Average was little changed as chip companies extended their losses. The gauge sank 4.2% Wednesday in its steepest drop since the Aug. 5 rout as tech shares slumped amid concerns over the US economy.
Japanese IT services and consulting company Nomura Research Institute Ltd. climbed as much as 5.4% to a record high after an announcement that it will be added onto the Nikkei 225.
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