Japan's Nikkei breaks 35,000 for first time in nearly 34 years

SMC

11/01/2024 06:51

(Updates levels at 0630 GMT)
       TOKYO, Jan 11 (Reuters) - Japan's Nikkei share average
scaled its highest levels since February 1990 on Thursday, as a
weaker yen buoyed exporters and caution over an impending hike
by the Bank of Japan continued to fade on the back of weak wage
data.
    The Nikkei  .N225  rose 1.77% on its third straight day of
gains this week, closing at its highest in nearly 34 years at
35,049.86. The index was also on its way to the largest weekly
gain since late March 2020.
    The broader Topix  .TOPX  rose 1.57% to end at 2482.87.
    The strong earthquake that hit western Japan last week and
lacklustre wage growth data are forcing market participants to
"reappraise" when the Bank of Japan (BOJ) will normalise its
monetary policy, said Tony Sycamore, a market analyst at IG.
    Workers' real wages shrank for a 20th straight month in
November, according to data published on Wednesday, confounding
officials' wishes to see wage gains before tightening policy.
    "That (wage data) gave the Nikkei the excuse to pop up
there, towards that 35,000 level," said Sycamore, adding the
index "probably can continue to make good gains while we try and
work out when the BOJ can look to take its next step."
    The yen  JPY=EBS  fell 0.9% on the U.S. dollar overnight in
the wake of the data and was hovering around 145.52 during Asian
trading hours.  FRX/ 
    A weaker yen tends to support exporter shares, increasing
the value of overseas profits in yen terms when firms repatriate
them to Japan.
    Japanese stocks also got a boost from upbeat performances on
Wall Street as megacaps rallied.  .N 
    SMC Corp  6273.T  gained 4.69% to top off Thursday's
winners, followed by Itochu Corp  8001.T  up at 4.5% and
telecommunications company KDDI Corp  9433.T  closing higher at
4.21%.
    Also among the best performers were Sony Group Corp  6758.T 
up at 3.54% and Suzuki Motor Corp  7269.T  gaining 3.86%.
    The largest percentage losses in the index were Yamato
Holdings Co Ltd  9064.T  down 3.85%, followed by Rakuten Group
Inc  4755.T  losing 2.44% and Tokyo Gas Co Ltd  9531.T  down by
1.43%.
    

 (Reporting by Brigid Riley; Editing by Savio D'Souza and Sherry
Jacob-Phillips)
 ((brigid.riley@thomsonreuters.com;))