Nikkei advances on the payment of Evergrande’s debt; US rate hike concerns cap gains

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TOKYO, Oct.22 (Reuters) – Japan’s Nikkei rose slightly on Friday after debt-ridden developer China Evergrande Group made a bond payment, but uncertainties over U.S. interest rate hikes and caution ahead of the country’s general election and corporate earnings season capped earnings.

The Nikkei stock average rose 0.34% to close at 28,804.85, after gaining up to 0.98% earlier in the session, following the Chinese real estate developer announcement. a bond interest payment. Over the week, the Nikkei lost 0.9%.

The larger Topix edged up 0.7% to 2,002.23.

Tech stocks led the gains, with chip-linked Tokyo Electron up 4.4% and Advantest adding 1.22%. Disco rose 2.99% after posting a 71% jump in operating profit in the first half of the year.

But the market has been plagued by uncertainties outside of Japan as Evergrande still has to repay its debt, the price of oil remains high and US bond yields rise overnight, said Shoichi Arisawa, chief executive of the research department. in investment at IwaiCosmo Securities.

“On top of that, in Japan we have a national election coming up and the results season starting next week. Investors wanted to wait and see the outcome of these events before making any bets.”

The LDP could lose a few seats in the October 31 lower house elections, but the ruling coalition it forms with the Komeito party is expected to retain a majority, according to national media.

Japan Post Holdings fell 1.63% before the government sold its shares, which could absorb nearly $ 8 billion in market liquidity. (Reporting by Junko Fujita; Editing by Anil D’Silva and Vinay Dwivedi)


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