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Felicia Tan
July 3 20:24

Japanese stocks rose after strong US data

Japan's stock indices closed on Friday as strong US employment data supported optimism about the recovery of the world's largest economy. However, investors remain suspicious as Tokyo recorded a sharp rise in coronavirus infections.
The Nikkei index rose by 0.72% to 22.306.48 points, while the wider Topix index added 0.62% to 1.552.33 points. Nikkei has fallen by 0.9% since the beginning of the week.
The rise was led by CyberAgent Inc, M3 Inc and Yamato Holdings Co Ltd, which rose by 4.87%, 4.47% and 3.68% respectively. The leaders of the decline were J.Front Retailing Co Ltd, Credit Saison Co Ltd and Takashimaya Co Ltd, which lost 4.02%, 4% and 3.3% respectively.
The number of employed in the US economy excluding the agricultural sector increased by 4.8 million in June, while analysts expected growth of 3 million. The indicator became record-breaking since the start of statistics in 1939.
Meanwhile, over 100 new cases of coronavirus infection were detected in Tokyo on Friday. The indicator exceeds 100 for the second consecutive day and is the maximum for two months. The authorities say so far that there is no need for a renewed state of emergency, but traders indicate that stock managers are making adjustments to investments in view of the possibility of new restrictive measures.
The shares of the developer of video games Nintendo rose by 3.6%, while those of the medical data platform M3 rose by 4.5%.
Meanwhile, the securities of ANA Holdings and Kyushu Railway fell by 1.3% and 1.5% respectively.
The generating companies came under pressure after media reports that the authorities want to shut down about a hundred of the oldest and most inefficient coal-fired power plants by about 2030. Tokyo Electric Power and Shikoku Electric Power dropped by 1.5% and 1.4%, respectively.
Earlier BlackRock Investment Institute analysts raised the recommendation for Japanese shares to "neutral" level from "below the market".