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Japan's Nikkei posts biggest weekly gains since September
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Japan's Nikkei posts biggest weekly gains since September
Nov 8, 2024 4:01 PM

(Updates with prices as of 0630 GMT)

By Brigid Riley

TOKYO, Nov 8 (Reuters) - Japan's Nikkei share average

rose on Friday, locking in its largest weekly gains since

September, although downward revisions to corporate profits and

uncertainty about whether Republicans would win both chambers of

the U.S. Congress weighed.

The Nikkei closed 0.3% higher at 39,500.37, while

the broader Topix ended down 0.03% at 2,742.15.

The Nikkei secured its biggest weekly gain since late

September at 3.8%, rallying with Wall Street after former

Republican President Donald Trump's victory in the U.S.

presidential election.

Japan's AI-focused startup investor SoftBank Group

added 2.9% and was among heavyweight shares to follow their U.S.

peers higher.

Uniqlo parent firm Fast Retailing ( FRCOF ) and staffing

agency Recruit Holdings ( RCRRF ), up 0.8% and 4.4%,

respectively, also lent support to the Nikkei.

However, investors were still waiting to see if Republicans

manage to take control of both chambers of the U.S. Congress,

which could affect how easily Trump can enact his proposals.

"It's unclear whether we're going to see a 'Red sweep' or a

divided government situation. So momentum for the Nikkei to

aggressively rise is not particularly strong at the moment,"

said Masahiro Ichikawa, chief market strategist at Sumitomo

Mitsui DS Asset Management.

Meanwhile, domestic corporate earnings have also "not been

particularly good", with companies in economically sensitive

areas such as automakers posting more cautious earnings,

limiting the upside for gains on the Nikkei, he added.

Corporate revenue releases drew out some of the biggest

winners and losers on the Nikkei.

Electronics components maker Taiyo Yuden ( TYOYF ) tumbled

16%, cosmetic firm Shiseido ( SSDOF ) slipped 7%, while

electronics maker Furukawa Electric ( FUWAF ) surged 17.4%.

Nissan Motor ( NSANF ) slumped as much as 10% after

announcing on Thursday it will cut 9,000 jobs and 20% of its

global manufacturing capacity.

It was last down 6.1%, along with Toyota ( TM ) and Honda

, down 3.6% and 2.7%, respectively.

A relatively stronger yen versus the U.S. dollar

didn't help sentiment for exporter shares.

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