Nikkei rises as trade jitters ease, banks weakened by low rates and bad debt

Date:

Nikkei rises as trade jitters ease, banks weakened by low rates and bad debt
Nikkei rises as trade jitters ease, banks weakened by low rates and bad debt
Reuters | Jun 20, 2018 11:20PM ET

Thank you for reading this post, don't forget to subscribe!

Be the first to comment
Nikkei rises as trade jitters ease, banks weakened by low rates and bad debt
By Ayai Tomisawa

TOKYO (Reuters) – Japan’s Nikkei share average rose on Thursday morning as investor jitters over trade issues that hit markets early this week appeared to recede, while technology stocks rallied on the Nasdaq strong performance overnight.

The Nikkei index (N225) rose 0.8 percent to 22,734.28 at the midday break.

“The market has calmed down a little bit as most investors think that trade tension would not escalate further from there… U.S. and China would be both hurt if they keep going like that,” said Torus Kobayashi, executive director at wealth management at UBS Securities.

Market participants focused on the Topic’s recent underperformance against the Nikkei which they attributed to weakness in banks, which have large weighting on the Topic.

The broader Topic (TOP) lagged the Nikkei, rising only 0.3 percent, spiking the so-called NTH ratio <.NTIDX> to 12.94, its highest level since 1999.

The banking sector <.IBNKS.T>, which dropped 1.3 percent and was the second worst sectoral performer on Thursday, has shed 15 percent since the beginning of the year as the Bank of Japan’s negative interest rate policy has undermined lending. Moreover, the sector was hurt by a report in the Nikkei newspaper stating that mega banks’ cash advances to card holders at annual interest rates of 2-14 percent are piling up irrecoverable debt.

The Nikkei said that bad debt tied to such cash advances climbed 13 percent to a six-year high of roughly 140 billion yen ($1.27 billion) in fiscal 2017.

Sumitomo Mitsui Financial Group (T:8316) dropped 1.8 percent, Mitsubishi UFJ Financial Group (T:8316) fell 1.3 percent and Mizuho Financial Group (T:8411) shed 0.7 percent.

Tech shares gained ground. TDK Corp (T:6762) surged 2.2 percent and Sumac (T:3436) advanced 1.8 percent.

Naija247news
Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

Share post:

Subscribe

Popular

More like this
Related

Access Holdings to pay N1.80 as final dividend to shareholder

March 28, 2024. Azonuchechi Chukwu. Access Holdings has revealed plans to...

Police gun down two notorious bandits in Benue

March 28, 2024. Azonuchechi Chukwu. Men of Operation Zenda, a Joint...

Army declares eight wanted in connection with the k!lling of its officers in Okuama

March 28, 2024. Azonuchechi Chukwu. The Nigerian Army has declared eight...

Naira Appreciates Against Dollar at the NAFEM Window

March 28, 2024. Azonuchechi Chukwu. The Naira’s euphoric appreciation against the...
Social Media Auto Publish Powered By : XYZScripts.com

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading