In Tokyo, the Nikkei closed up 1.80% at 39,332.74 points, recovering after dropping 3% over the entire previous week. The broader Topix index gained 1.7% to 2,739.39 points.
Asian stock markets were boosted on Monday by robust US employment figures published before the weekend, Tokyo climbing sharply at the close in a market also supported by the continued weakening of the yen while Hong Kong strengthened before the reopening of places in mainland China.
In Tokyo, the flagship Nikkei index closed up 1.80% at 39,332.74 points, recovering after dropping 3% over the entire previous week. The broader Topix index gained 1.7% to 2,739.39 points.
The Asian markets followed in the footsteps of the good performance of the New York markets on Friday – the Dow Jones ended the session at a new historic level – after the announcement of job creation up sharply and well above expectations in September in the United States.
“These figures reinforced expectations of a soft landing for the American economy and reinforced the rise in the dollar” and the weakening of the yen associated with an increased appetite for risk “prompted investors to turn to the markets of Japanese shares, considered undervalued” after several gloomy sessions, observed analysts from the broker IwaiCosmo Securities.
The yen widened its losses on Monday, moving to its lowest levels for a month and a half against the dollar, still handicapped by divergent speeches among American and Japanese central bankers, and by the return of speculative investors to the foreign exchange market.
The Japanese currency was trading at 148.42 yen per dollar around 08:05 GMT, after falling below 149 yen. On the other hand, it strengthened slightly against the single European currency, to 162.76 yen per euro.
Japan’s new Finance Minister, Katsunobu Kato, warned on Monday that the government would “monitor” fluctuations in the foreign exchange market, considering that sudden speculative movements could harm the economy.
A weakened yen favors the stocks of large exporting companies, such as Fast Retailing (+3.19%).
The Japanese distribution giant Seven & i Holdings rose 1.75%, after press reports on its plan to sell several activities to concentrate on its popular 7-Eleven convenience stores, and thus complicate a potential takeover by its Canadian rival Couche-Tard.
Finally, Nintendo shares soared by more than 5%: according to the Kyodo press agency, the Saudi sovereign wealth fund plans to increase its stake in the Japanese video games giant, of which it already owns 8.6%.
Robust Hong Kong
In Hong Kong, the Hang Seng index rose 1.3% to 22,971.12 points around 08:05 GMT.
In addition to American employment, the Hong Kong market remained buoyed by the recovery plan announced a week earlier by Beijing. China’s powerful economic planning agency (NDRC) will unveil details of several measures to support the economy on Tuesday.
“Optimism about the robustness of consumption in China during the National Day holiday may have provided additional support,” added Standard Chartered analysts.
The Shanghai and Shenzhen Stock Exchanges remained closed, for the last day of the National Day holidays, before resuming trading on Tuesday, after a week of closure: with the possibility of seeing them soar from the first trading, due to a very strong appetite from investors.
The oil market remained feverish, agitated by fears of a possible Israeli response against Iran likely to upset the world supply of crude.
After jumping at the end of the week, the price of a barrel of American West Texas Intermediate (WTI), due in November, caught its breath, losing 0.20% to $74.26 around 08:15 GMT.
