Japan Nikkei extends gain on economic activity optimism

The Japanese stock market ended the session higher on Monday, May 23, 2022, with the Nikkei closing above the psychological level of 27,000.

Market risk sentiments are underpinned by hopes for a pick-up in economic activity after the Japanese government’s decision late last week to ease border controls for overseas arrivals.

At the close, the 225-number Nikkei Stock Average was up 262.49 points, or 0.98%, at 27,001.52. The broader Topix index of all issues in the first section on the Tokyo Stock Exchange rose 17.20 points, or 0.92%, to 1,894.57.

Chief Cabinet Secretary Hirokazu Matsuno said last Friday that the Japanese government would double the cap on overseas arrivals to 20,000 people a day from next month. The easing policy follows an earlier decision to accept small-scale tours for vaccinated tourists from the United States, Australia, Thailand and Singapore as a trial later this month in preparation for the large-scale reception of foreign visitors planned for June.

Shares of leisure-related companies rose on expectations of more overseas tourists.

Operator Tokyo Disney Resort Oriental Land and Daiichikosho both rose 2%, while travel agency HIS rose 0.9%.

Shares of Tokio Marine Holdings jumped 7.6% after the insurance company reported strong profits for fiscal 2021 and announced plans to buy back up to 50 billion yen of shares.

CURRENCY NEWS: The dollar hit 127.58-59 yen versus 127.87-97 yen in New York and 127.92-94 yen in Tokyo as of 5 p.m. Friday.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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