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Nikkei rallies on weaker yen, Wall Street gains post-US jobs report
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Nikkei rallies on weaker yen, Wall Street gains post-US jobs report
Oct 7, 2024 12:12 AM

(Updates with prices as of 0600 GMT)

By Brigid Riley

TOKYO, Oct 7 (Reuters) - Japan's Nikkei share average

jumped more than 2% on Monday, supported by a weaker yen and

Wall Street's gains on Friday after a stronger-than-expected

jobs report suggested the world's largest economy remained

resilient.

The Nikkei closed up 1.8% at 39,332.74 in a

widespread rally, after rising 2.39% earlier in the session. The

broader Topix rose 1.7% to 2,739.39.

U.S. nonfarm payrolls increased by the most in six months in

September and the unemployment rate fell to 4.1%, data showed on

Friday, buoying global investor sentiment.

The latest jobs report raises the chance of a soft landing,

and possibly earlier than expected, said Naka Matsuzawa, chief

macro strategist at Nomura Securities.

"If that happens, that's definitely a plus for Japanese

stocks, which are quite cyclical and sensitive to the global

economic recovery."

The U.S. dollar rallied following the jobs data, sending the

yen down to its lowest levels since mid-August. The softer yen

boosted shares of exporters, including automaker Toyota Motor ( TM )

which climbed 2.3%.

Investor sentiment was also lifted after the Dow posted a

record closing high on Friday and the Nasdaq ended with a more

than 1% gain.

The Nikkei was edging toward the 40,000-point range,

although it may be too early to try for the key level as

investors await further confirmation about the U.S. economy's

outlook, said Nomura's Matsuzawa.

The U.S. presidential election is also fast approaching,

taking place in early November.

Financial shares rallied on Monday, supported by a rise in

Japanese government bond (JGB) yields, with Resona Holdings ( RSNHF )

surging 8.7% to become the top percentage gainer on the

Nikkei.

Semiconductor and other major technology stocks also

performed solidly, including chip-testing equipment maker

Advantest ( ADTTF ), adding 3.1%, and AI-focused startup investor

SoftBank Group, up 2.2%.

Among other heavyweights, Uniqlo parent Fast Retailing ( FRCOF )

gained 2.5% to give the Nikkei the biggest bump higher.

(Reporting by Brigid Riley; Editing by Subhranshu Sahu and

Varun H K)

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