TOKYO: Japan’s Nikkei share average rose on Tuesday morning as a weak yen and rising U.S. futures underpinned sentiment, shrugging off soft Chinese factory surveys.
Activity in China’s manufacturing sector contracted more than expected in November, an official survey showed on Tuesday. A separate private survey also showed factory activity contracted for the ninth straight month in November.
But traders said the weak outcome in the surveys was priced into the market when Japanese stocks fell on Monday.
“A weak yen and rising U.S. futures dominate market sentiment today,” said Yutaka Miura, senior technical analyst at Mizuho Securities, adding that investors remain bullish about the Japanese market although they may sell when the Nikkei benchmark gets closer to 20,000.
The Nikkei rose 0.9 percent to 19,918.52 in mid-morning trade, after falling 0.7 percent on the previous day.
The dollar traded above 123.00 yen overnight for the first time in a week. At 0129 GMT, it traded at 123.11. Investors looked ahead to the U.S. nonfarm payrolls report which will be out on Friday. A solid report would cement expectations that the U.S. Federal Reserve is on track to increase interest rates this month for the first time in nearly a decade.
