Japanese market is rising after positive domestic data

Japanese market is rising after positive domestic data

The main Japan stock index Nikkei closed this day with 1 percent gain, which raised the month profit by 1.9 percent. Meanwhile, yen is still weak. And an increase of the American dollar does not help the situation.

Dollar was raised by the information about August payrolls, which traders are waiting to receive this Friday.

Japanese economy relies on the new perspectives of the policy easing that was promised by their national Bank of Japan. Stocks were supported by the slow rise in the official local data.

The first months of summer showed the flat results in Japanese industrial spheres. It was released by officials this Wednesday. Economists predict 0.8 percent rise of the factory activity. Still, the new data says that it may not meet the expectations, because of the weak economy.

This Tuesday new data for July spending on the household area appeared to be less than it was previously expected by the economists. At the same time, jobless index went down and reached its lowest number in two decades. This information is giving more hopes to the government.

Yukitoshi Funo, the member of Bank of Japan during his speech this Wednesday has confirmed that bank is going to use this information as the tool for moving away the country from the weak economy.

According to Kathy Lien, FX strategy director, Japanese government is concerned a lot about the weak economy, even though they received very low jobless numbers and rise in the retail sales.