Japanese stocks rose on Thursday morning as gains on Wall Street helped calm nerves, with investors taking a glass half-full view to weak sentiment among major Japanese businesses and falling manufacturing activity in China.
“We believe the European Central Bank will extend its QE program beyond September 2016, most likely until mid-2018, and that it could reach 2.4 trillion euros – more than twice the original 1.1 trillion commitment”, they said in a note.
Exporters gained ground following recent declines, with Toyota Motor Corp rising 3.0 per cent and Nissan Motor Co advancing 5.4 per cent.
The broader Topix climbed 2.2 percent to 1,442.74, closing the day with 31 of its 33 subindexes in positive territory.
The dollar gained and global equity markets rallied on Wednesday, adding an upbeat note to an otherwise dismal third quarter on hope the commodities rout has run its course. The index has now dipped below its levels at the start of the year.
The large manufacturers’ index came in with a score of 12, missing forecasts for 13 and down from 15 in the previous quarter.
“The Nikkei reacted well to the Chinese PMI news”, Nicholson said.
That was up from last month’s preliminary score of 50.9, although it was down from the eight-month high reading of 51.7 in August.
The US dollar USDJPY, +0.07% was at ¥120.25 from ¥119.88 late Wednesday in New York, erasing much of its overnight losses on a disappointing Chicago purchasing managers index that pulled the USA currency down to ¥119.55. Traders also reacted positively to a report from payroll processor ADP showing stronger than expected private sector job growth in the month of September.
The Dow Jones Industrial Average closed down 1.92 percent, while the broad-based S&P 500 shed 2.57 percent and the tech-rich Nasdaq Composite Index tumbled 3.04 percent.
Net income in the period soared 26.3% to 2.33 billion yen compared to 1.85 billion yen and earnings per share rose to 142.40 yen from 112.71 yen.
Crude oil futures dipped after United States inventories showed a weekly buildup that far exceeded analysts’ expectations. Hong Kong’s Hang Seng slid 3.0 percent to 20,556.60.