Japan's Nikkei ends higher as investors step in after two-day slump

TDK

28/11/2024 07:28

(Updates with closing prices)
       TOKYO, Nov 28 (Reuters) - Japan's Nikkei share average
reversed course to end higher on Thursday after two straight
sessions of losses made stocks relatively cheaper.
    The Nikkei  .N225  gained 0.56% higher to close at
38,349.06, after dropping as much as 0.87% earlier in the
session.
    The broader Topix  .TOPX  climbed 0.82% to 2,687.28.
    "We saw little market-moving cues today, but investors
wanted to buy back cheap stocks. Even shares in Toyota rose
despite a stronger yen," said Seiichi Suzuki, chief equity
market analyst at Tokai Tokyo Intelligence Laboratory.
    "Japanese stocks are cheap relative to U.S. stocks."
    Toyota  7203.T , which fell 2.2% this week, added 1.4%,
while peer Honda Motor  7267.T  gained 0.5%.
    Chip-making equipment maker Tokyo Electron  8035.T  jumped
6.74% to lend the biggest boost to the Nikkei.
    Wall Street's main indexes closed lower on Wednesday, with
the Nasdaq leading the declines, as technology stocks slumped on
worries that the Federal Reserve might be cautious about rate
cuts after stubbornly strong U.S. inflation data.  .N 
    The yen  JPY=EBS  advanced 2.4% this week and recovered
losses suffered since the U.S. presidential election. But the 
Japanese currency has weakened through the Asia session, trading
down 0.33% to 151.585 per U.S. dollar.  FRX/ 
    A stronger yen tends to hurt the shares of exporters as it
decreases the value of overseas profits in yen terms when firms
repatriate them to Japan.
    The yen's strength drove expectations that the Bank of Japan
(BOJ) might not raise its policy rate at its December meeting,
which was positive for local equities, said Suzuki.
    Just over half of the economists surveyed in a Reuters poll
expected the BOJ to raise interest rates again next month as a
strengthening economy and concerns over the depreciating yen
prompt policymakers to act.
    Chip-testing equipment maker Advantest  6857.T  fell 3.48%
to weigh on the Nikkei the most.

 (Reporting by Junko Fujita; Editing by Abinaya Vijayaraghavan
and Sumana Nandy)
 ((junko.fujita@thomsonreuters.com;))