Nikkei rises on weaker yen, China's surprise policy shift

YASKAWA Electric

10/12/2024 06:50

(Updates for market close)
    By Brigid Riley
       TOKYO, Dec 10 (Reuters) - Japan's Nikkei share average
advanced on Tuesday as a softer yen lifted exporter shares,
while stocks with a connection to China soared on Beijing's new
promises of an "appropriately loose" monetary policy next year.
    The Nikkei  .N225  closed up 0.5% at 39,367.58, while the
broader Topix  .TOPX  rose 0.3% to 2,741.41.
    Automakers were among exporter shares that climbed as the
yen softened against the U.S. dollar.
    The dollar was trading around 151.055 yen  JPY=EBS  during
the afternoon session.
    Toyota Motor  7203.T  advanced 1.3%, Suzuki Motor  7269.T 
soared 2.7% and Honda Motor  7267.T  added 1.1%.
    Fanuc  6954.T  and Yaskawa Electric  6506.T , up 3.1% and
2.7% respectively, and other shares with strong ties to China
rallied, after Beijing's surprise announcement on Monday that it
plans to implement a looser monetary policy and more proactive
fiscal policy.
        Chip-testing equipment maker Advantest  6857.T  was
among a portion of Japan's chip-related shares that tracked AI
leader Nvidia  NVDA.O  and other U.S. technology shares lower
after China's market regulator launched a probe into Nvidia, but
recovered in afternoon trade.  .N 
        The stock climbed 0.9%.
    However, the Nikkei's rise was limited as investors
cautiously awaited the Federal Open Market Committee (FOMC) and
Bank of Japan (BOJ) monetary policy meetings next week.
    "A cut from the Federal Reserve is baked-in, but there's
uncertainty about what the BOJ does. So if the latter hikes, a
stronger yen will hurt Japanese stocks," said Kyle Rodda, senior
financial market analyst at Capital.com.
    Somewhat more hawkish guidance from the Fed regarding next
year's policy outlook could counterbalance the impact on the
dollar-yen pair, Rodda added.
    U.S. CPI data and the BOJ's "tankan" survey are due later
this week.
    Among other major stocks, chip equipment maker Tokyo
Electron  8035.T  added 3.5%, entertainment conglomerate Sony
Group  6758.T  rallied 4.1% and Uniqlo-owner Fast Retailing
 9983.T  edged up 0.2%.

 (Reporting by Brigid Riley; Editing by Sumana Nandy)
 ((mailto:brigid.riley@thomsonreuters.com;))