Nikkei rises with strong Chinese economic data

Japan’s Nikkei index closed higher on Tuesday, boosted by strong economic data from neighboring China and its main trading partner, but capped cautious gains ahead of the expected US interest rate hike, the first in three years, due later this month.

The market’s performance ranged from small gains to losses earlier in Tuesday’s session, as investors weighed risks, including a significant tightening of US monetary policy, as well as the rapid spread of the Coronavirus in China and the ongoing conflict between Russia and Ukraine.

The Nikkei closed up 0.15 percent to 25,346.48 points, after opening 0.35 percent lower.

With regard to the sub-indices of the Tokyo Stock Exchange, the index of insurance companies rose 2.8 percent after US bond yields jumped to their highest level in two and a half years last night. The aviation sector index rose 2.37 percent.

Oil exploration companies led the losses, as its index fell 6.58 percent, affected by the significant decline in oil prices. Inpex shares fell 6.82 percent.

The broader Topix index rose 0.79 percent to 1826.63 points.

Automakers rose, with Subaru adding 4.51 percent to become the biggest gainer on the Nikkei index. Nissan shares rose 4.22 percent and Toyota shares 2.14 percent.