After being pressured during the past five trading sessions, Japanese indexes emerged as the best performer among benchmark Asian indexes on June 5. The Nikkei 225 rose 1.8% and ended at 20,776.1. The broader TOPIX index outperformed the Nikkei 225 and rose 2.07%.
The Nikkei 225 closed at a five-month low on June 4, which prompted value investors and bargain traders to take long positions. The fall in the Japanese yen’s appreciation and positive cues from American indexes also provided support. Overall, 3,105 stocks on the Tokyo stock exchange rose, while 471 fell.
On the economic front, Nikkei and IHS Markit released the services PMI for May on June 5. The Business Activity Index, which gauges the service sector’s activity, fell marginally to 51.7 in May from 51.8 in April. The fall in the services PMI led to a drop in the Composite PMI from 50.8 in April to 50.7 in May.
South Korea’s KOSPI
South Korea’s KOSPI gained 0.1% on June 5 after ending almost flat the previous day. The iShares MSCI South Korea Capped ETF (EWY) rose 0.71% on June 4 after rising 1.89% on June 3.