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Nikkei surges above 20,000 line on solid U.S. data, weaker yen

TOKYO
2017-06-02 18:37

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Tokyo stocks closed higher on Friday, with the Nikkei Stock Average ending above the 20,000 threshold for the first time since December 2015, as market sentiment was bolstered by solid U.S. economic data and a softer yen.

The 225-issue Nikkei Stock Average added 317.25 points, or 1.60 percent, from Thursday to close the day at 20,177.28, marking its highest closing level since August 2015.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, gained 26.06 points, or 1.64 percent, to finish at 1,612.20.

The U.S. S&P 500 and the Nasdaq closed at record high on Thursday, as investors were digesting a batch of economic data from the country.

A monthly report by the payroll processor ADP showed earlier that the U.S. private payrolls surged by 253,000, well above market expectations of a 185,000-gain.

Meanwhile, economic activity in the U.S. manufacturing sector expanded in May, and the overall economy grew for the 96th consecutive month, reported the Institute for Supply Management (ISM) on Thursday.

The Nikkei surged above the 20,000 line from the outset on Friday, tracking the strong performance of the U.S. stocks overnight and the stronger U.S. dollar against the yen.

Gains were extended in the afternoon session, with export-related shares boosted by the weak yen and market sentiment boosted as major Asian markets advanced on optimism over a strong U.S. economy.

Trading volume on the main section on Friday came to 2,315.12 million shares, up from Thursday's volume of 1,738.30 million shares. The turnover of the day totaled 3,223.2 billion yen (28.88 billion U.S. dollars).

On the First Section, advancing issues outnumbered decliners 1,509 to 420 with 88 ending the day unchanged.

Iron and steel, securities and marine transportation-related stocks comprised those that gained the most by the close of play.

Mizuho, Mitsubishi UFJ, and Toshiba were the top traded companies with turnovers of 175.60 million shares, 129.26 million shares, and 61.08 million shares, respectively.

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