Last week, the prime minister of Japan, Shinzo Abe made the decision to leave his post due to worsening health. However, he would serve as the prime minister until the next leader is appointed. This decision affected stocks on Friday.
Japanese stocks saw gains on the day. The Nikkei 225 gained 1.12% to close at 23’139.76. In the meantime, the Topix index added 0.83% to end its trading day at 1’618.18.
Let’s have a look at the shares of Japenese trading firms. On August 31, shares of Mitsubishi Corp., Itochu Corp., Mitsui & Co. as well as Sumitomo Corp. jumped on Monday. On August 31, Warren Buffett announced that Berkshire Hathaway bought a slightly more than 5% stake in the companies.
Shares of Mitsubishi added 7.72% while shares of Itochu gained 4.19%. Also, shares of Marubeni jumped 9.48%, Mitsui gained 7.75%, and Sumitomo added 9.09%.
The coronavirus pandemic continues to dominate the headlines, as it created serious issues for companies around the world. Investors are closely monitoring the situation regarding the pandemic.
Manufacturing PMI and stocks on August 31
Notably, stocks in the Asia Pacific were mixed on August 31. It is worth mentioning that, Japanese stocks led gains among the region’s markets. As can be seen from the information stated above, investors are closely monitoring the political situation in the country.
Mainland Chinese stocks fell on the last day of August. The Shanghai Composite fell 0.24% to about 3’395.68. The Shenzhen Component dropped 0.672% to around 13’758.23.
Based on the information provided by the National Bureau of Statistics, the official manufacturing Purchasing Managers’ Index (PMI) for August came in at 51.1. Notably, the August PMI failed to meet expectations. It is worth noting that, PMI readings above 50 signify expansion while the result below 50 indicates contraction.
Investors are closely monitoring the situation in the world’s second-largest economy, to learn more about economic recovery.
South Korea’s Kospi index fell 1.17% to close at 2’326.17. Australia’s S&P/ASX 200 dropped 0.22% to end its trading day at 6’060.50.
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