Japan's Nikkei trades marginally higher amid caution ahead of election
23/10/2024 02:20
TOKYO, Oct 23 (Reuters) - Japan's Nikkei share average
was marginally higher on Wednesday as caution ahead of the
country's upcoming lower house election results dulled
automakers' shine.
The Nikkei .N225 was up 0.11% to 38,453.66 as of 0052 GMT.
The yen JPY=EBS fell overnight to 151.19 per U.S. dollar,
its lowest since July 31. A softer yen tends to help exporter
shares as it increases the value of overseas profits in yen
terms when firms repatriate them to Japan.
"With a weaker yen, investors could become more positive
about domestic stocks," said Seiichi Suzuki, chief equity market
analyst at the Tokai Tokyo Intelligence Laboratory.
"But they stayed away from making active bets as they
awaited the outcome of the general election. That capped today's
gains and this trend will continue this week."
Prime Minister Shigeru Ishiba dissolved the lower house of
parliament on Oct. 9, setting up the snap election on Oct. 27.
Local media reported that the ruling Liberal Democratic
Party (LDP) and its coalition partner Komeito may lose their
majority in the election.
The broader Topix .TOPX was up 0.17% to 2,656.02, with
Toyota Motor 7203.T rising 3.85% to become the biggest boost
to the index. Honda Motor 7267.T rose 2.98%.
Automakers ITEQP.T added 2.95% to become the best
performer among the Tokyo Stock Exchange's 33 industry
sub-indexes.
Among the Nikkei heavyweights, staffing agency Recruit
Holdings 6098.T fell 2.75% and Uniqlo-owner Fast Retailing
9983.T slipped 0.29%.
Home interior goods retailer Nitori Holdings 9843.T , whose
share prices are affected by a weaker yen as it imports most
materials for its products from abroad, fell 1.25%.
(Reporting by Junko Fujita; Editing by Sumana Nandy)
((junko.fujita@thomsonreuters.com;))