Japan stocks rise on first day of fiscal year

Bloomberg

Japanese stock benchmarks advanced on their first trading day of the new fiscal year as industries focused on Japan’s domestic economy helped prop up the market.
The Topix rose 0.3 percent, as foodmakers, retailers and telecommunications companies boosted the gauge. Defensive sectors were likely to be bought after an advance in their US counterparts, Shoji Hirakawa, chief global strategist at Tokai Tokyo Research Institute Co., said earlier. Trading volume on the Topix was 10 percent above the 30 day average.
“Short-term investors may be buying the market,” said Masaaki Yamaguchi, an equity market strategist at Nomura Holdings Inc. in Tokyo. “There may be some reversal of the overdone moves to sell last week. Algorithms may have moved too much on news on Trump’s stance on trade — investors could have priced that in now, starting to buy anew.”
The Tankan index, which measures large manufacturers’ sentiment towards broad conditions, was 12 in the quarter ended March, according to the Bank of Japan’s survey. The measure improved for a second consecutive quarter, but came in below economists’ median estimate of 14.
Further progress in corporate governance reforms, evidence of a recovery in domestic demand — particularly in consumption — and further outperformance in Japanese stocks in dollar terms could be potential catalysts to attract foreign investors back to Japanese stocks, Goldman analysts said in a note.