Japan's Nikkei trades higher as weak yen boosts exporters
18/01/2024 03:14
TOKYO, Jan 18 (Reuters) - Japan's Nikkei share average
changed course to trade higher on Thursday as a weaker yen
prompted investors to buy Toyota Motor and other exporter
stocks.
The Nikkei .N225 was up 0.45% to 35,637.01 by the midday
close, after opening 0.3% lower.
The broader Topix .TOPX was up 0.23% at 2,502.13.
"Investors appreciated the weaker yen," said Shuji Hosoi,
senior strategist at Daiwa Securities.
"Today's gain was led by foreigners who scooped up large
stocks."
Toyota Motor 7203.T rose 3.64% to become the top gainer on
the Nikkei. The index for automakers .ITEQP.T jumped 2.96% to
become the top performer among the 33 industry sub-indexes on
the Tokyo Stock Exchange.
Tyre makers .IRUBR.T rose 2.81%, with Bridgestone 5108.T
and Toyo Tire 5105.T gaining 3.15% and 4.35%, respectively.
The dollar held close to a one-month peak versus major peers
on Thursday after robust U.S. retail sales data overnight added
to building expectations the Federal Reserve will not rush to
lower interest rates. FRX/
A softer yen helps exporters as it raises the value of
overseas profits in yen terms when firms repatriate them to
Japan.
Chip-testing equipment maker Advantest 6857.T rose 2.98%
to give the biggest boost to the Nikkei. Chip-making equipment
maker Tokyo Electron 8035.T rose 1.14%.
Uniqlo-brand owner Fast Retailing 9983.T rose 0.9%.
However, investors were cautious about sharp gains in the
benchmark index, capping a further rise in the current session,
strategists said.
The Nikkei rose 8% since the beginning of this year to hit
its highest since February 1990 during the previous session. The
session ended 0.4% lower.
Video game maker Nexon 3659.T fell 4.9% to become the
worst performer on the Nikkei.
Marketplace site operator Mercari 4385.T fell 3.44%.
Of the 225 Nikkei components, 120 rose and 101 fell, with
four trading flat.
(Reporting by Junko Fujita; Editing by Sohini Goswami)
((junko.fujita@thomsonreuters.com;))