Japan stocks surge as Nikkei 225 rises

Japan’s stock market saw a positive close on Friday, with the Nikkei 225 index climbing by 0.64%. This uptick was largely driven by gains in the Paper & Pulp, Insurance, and Communication sectors.

Among the top performers, Sumitomo Dainippon Pharma Co Ltd (TYO:4506) soared by 8.00%, adding 30.00 points to end the session at 405.00. Ebara Corp. (TYO:6361) followed with a 7.32% increase, gaining 173.50 points to close at 2,543.50. IHI Corp. (TYO:7013) also performed well, rising by 5.91% or 268.00 points to finish at 4,805.00.

Conversely, Hino Motors, Ltd. (TYO:7205) experienced a decline, dropping by 5.43% or 24.00 points to close at 418.00. Shiseido Co., Ltd. (TYO:4911) saw a 4.95% decrease, losing 239.00 points to end at 4,588.00, while Sharp Corp (TYO:6753) fell by 4.76% or 46.50 points to 930.10.

The Tokyo Stock Exchange had more falling stocks than advancing ones, with 1,979 declines against 1,634 advances, and 270 stocks remaining unchanged. Notably, IHI Corp. (TYO:7013) reached a five-year high, marking a 5.91% increase to 4,805.00.

In terms of market volatility, the Nikkei Volatility index, which measures the implied volatility of Nikkei 225 options, dropped by 3.00% to 16.18, hitting a new six-month low.

In the commodities market, crude oil for August delivery rose by 0.62%, or 0.51, to $82.25 a barrel. Brent oil for September delivery increased by 0.52%, or 0.44, reaching $85.70 a barrel. Additionally, the August Gold Futures contract inched up by 0.06%, or 1.30, to trade at $2,337.90 per troy ounce.

On the currency front, the USD/JPY pair edged up by 0.11% to 160.91, while the EUR/JPY pair saw a slight increase of 0.02% to 172.10.

Fidelity Japan Trust PLC (LON:FJV) aims to be the key investment of choice for those seeking Japanese companies exposure. The Trust has a ‘growth at reasonable price’ (GARP) investment style and approach – which involves identifying companies whose growth prospects are being under-appreciated or are not fully recognised by other investors. 

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