Nikkei Rises Above 17,000 on US Debate and Oil Prices

The Nikkei index finished above the 17,000 line on Tuesday for the first time in about one month on rising oil prices, with the perception among some brokers that Democratic candidate Hillary Clinton won the second U.S. presidential debate also providing support to shares.

The 225-issue Nikkei Stock Average ended up 164.67 points, or 0.98 percent, from Friday at 17,024.76. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 5.74 points, or 0.42 percent, higher at 1,356.35. Tokyo markets were closed on Monday for a national holiday.

Gainers were led by mining, oil and coal product and marine transportation issues.

The Nikkei index topped the 17,000 threshold for the first time since Sept. 7 as the benchmark West Texas Intermediate contract for November delivery jumped to $51.35 per barrel, a roughly one-year-and-three-month high on Monday in New York after Russian President Vladimir Putin said that he will support efforts to cut crude production, easing oversupply concerns.

“Strong oil prices lifted U.S. shares and also sparked a rise in Tokyo stocks. It’s a risk-on market,” Yutaka Miura, senior technical analyst at Mizuho Securities Co., said.

Brokers said shares also rose on a perception that Clinton edged Republican candidate Donald Trump in Sunday’s second presidential debate, reassuring those worried about the prospect of a Trump presidency.

via Mainichi

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza