Nikkei Stock Average hits a new high for the year-to-date; next week features a packed lineup of events

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The Nikkei stock average continued to rise, ending at 19,604.61 yen, up 286.03 yen (1.48%) from the previous day. Since the grand opening, this marked a new high for the year, after about two months. After the futures and options derivatives market passed, with tonight’s US employment report in view, a range-bound market was expected, but the yen weakened and the dollar strengthened in the FX market, with about 115 yen per dollar in the early part of the 1-dollar-to-115-yen range, boosting export-related stocks and pushing the index higher. At the close, Nikkei-style and weighted indexes saw inflows, and the trading value on the TSE First Section reached 2.9484 trillion yen, the highest this year. About 150,000 shares per issue were traded on average. In the FX market, the USD/JPY rose on the favorable reception of rising U.S. interest rates. Today is the period when commercial settlements concentrate on the 5th and 10th, and there was legitimate dollar buying ahead of the fixing. The Osaka Exchange announced after the close that the special futures and options (SQ) price for the March contract of the Nikkei 225 was 19,434.30 yen. The TOPIX also rose, by 19.33 points (1.24%) to 1,574.01, recording a new intrayear high.

The trading volume on the TSE First Section was 2.26716 billion shares. The number of advancing issues on the TSE First Section was 1,563, declining issues 341, and unchanged 100. Of the 33 industry sectors on the TSE First Section, 31 sectors including insurance, securities/commodities, air transport, pharmaceuticals, services, electrical machinery, food products, and transportation equipment rose, while only iron and steel and shipping fell.

In the U.S. market, tonight’s February employment report is expected by the market to show non-farm payrolls increasing by 200,000. The previous figure was an increase of 227,000. The average hourly wage is expected to rise 2.8% year over year, up from 2.5% previously. By the way, Nomura Securities forecasts 235,000; Goldman Sachs Securities 215,000; Morgan Stanley Securities 250,000, among stronger NFP predictions.

Next week, on the 13th, Draghi will speak; on the 14th, Toshiba’s earnings submission deadline and President Trump–Chancellor Merkel meeting; on the 15th, Dutch lower house election and FOMC Chair Yellen’s press conference; on the 16th, the BOJ meeting and Governor Kuroda’s press conference, and the Trump administration's budget outline being submitted to Congress and the new immigration ban taking effect; on the 17th, the G20 summit continues as a focal event.

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