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Japan PM Suga decides to step down, Nikkei rises

Japanese Prime Minister Yoshihide Suga said on Friday he had decided not to run in the ruling Liberal Democratic Party's leadership race, setting the stage for his replacement after just one year in office.

 

·         Japan's Topix index hits 30-year high as Suga to step down

Japanese shares soared on Friday, with the broad Topix index hitting a three-decade high, after Prime Minister Yoshihide Suga offered to resign, opening the way for a fresh government that could help the ruling party win an upcoming election.

Nikkei share average rose 1.7% to 29,020, reaching its highest level since June, while the Topix vaulted as much as 1.7% to 2,017.00, reaching a level last seen in April 1991.

The market has been rallying this week on hopes for a stronger government ahead of a ruling party leadership race and a general election later this year.

Kyodo News reported Suga will step down and party sources said he would not run in a ruling party leader race in September, setting the stage for his replacement after just one year in office.

 

The Nikkei 225 closed 2.05% higher at 29,128.11 while the Topix index finished the trading day 1.61% higher at 2,015.45.

·         China’s stock trading volume surges above 1 trillion yuan for weeks as other investment options dry up

 

·         China will create a stock exchange in Beijing

China will set up a new stock exchange in Beijing, giving the nation's capital and political center more influence in the world of business and finance.

·         China’s tech giants pour billions into Xi’s vision of ‘common prosperity’

 

·         Indian shares hit record highs on Reliance boost; U.S. jobs data eyed

Indian shares hit all-time highs on Friday, boosted by Reliance Industries and a jump in Exide Industries following the sale of the battery maker’s insurance unit to HDFC Life Insurance, while the focus is also on a key U.S. jobs report later in the day.

The blue-chip NSE Nifty 50 index was up 0.07% at 17,246.25 by 0512 GMT and the benchmark S&P BSE Sensex rose 0.05% to 57,880.10. The Nifty is set for its best week since early February.

Broader Asian markets held their gains as investors awaited U.S. jobs data to ascertain the pace and timing of the Federal Reserve’s tapering of asset purchases

 

·         MSCI’s largest index of Asia-Pacific shares outside Japan rose 0.1%.

 

The Caixin/Markit services Purchasing Managers’ Index came in at 46.7, against July’s reading of 54.9. Earlier this week, the official non-manufacturing PMI for August showed contraction in the sector for the first time since early 2020.

PMI readings above 50 represent expansion, while those below that level signal contraction. PMI readings are sequential and represent month-on-month expansion or contractions.

Hong Kong’s Hang Seng index shed 0.89%.
Hong Kong-listed shares of Alibaba fell more than 3% following reports that the firm is set to invest 100 billion yuan (about $15.5 billion) by 2025 for “common prosperity.”

 European markets were fractionally lower on Friday morning as investors awaited key economic indicators out of the euro zone and the U.S.

·         Stock futures are flat ahead of August jobs report

U.S. stock futures were steady in overnight trading on Thursday as investors geared up for August’s jobs report.

Dow futures rose just 6 points. S&P 500 futures gained 0.05% and Nasdaq 100 futures were flat.

Reference: CNBC, Reuters, Investing, CNN