Japan’s Nikkei ends at one-week high tracking Wall Street strength, weak yen
TOKYO — Japan’s Nikkei share average ended at a one-week high on Thursday, tracking Wall Street’s overnight strong finish, while the yen falling against the dollar raised hopes for better outlook for domestic companies.
The Nikkei jumped 2.31% to 28,065.28, its highest closing level since Aug. 31. The index marked its biggest daily gain in four weeks.
The broader Topix ended a six-session losing streak, jumping 2.19% to 1,957.62.
The dollar hovered near a two-decade high on Thursday, after surging to a 24-year peak against the yen overnight, as Japan’s dovish monetary policy contrasted with a hawkish Federal Reserve.
“Weakening yen is basically good for Japanese exporters and that could boost their earnings per shares,” said Shuji Hosoi, senior strategist at Daiwa Securities.
“The rebound of the Nasdaq index after a seven-session losing session has boosted sentiment for Japanese equities market.”
Hosoi also said the gain in Japanese equities is temporary because the gap in rates in Japan and the United States is set to widen, limiting the yen’s potential for gains against the dollar.
Uniqlo clothing shop owner Fast Retailing rose 3.33% and gave the biggest boost to the Nikkei, followed by chip making equipment maker Tokyo Electron gaining 2.17%.
Air-conditioning maker Daikin Industries rose 3.61% and technology investor SoftBank Group gained 2.44%.
The airline sector rose 3% as Japan further relaxed its infection border controls.
ANA Holdings and Japan Airlines advanced 2.5% and 3.6%, respectively.
Department stores were also strong, with Isetan Mitsukoshi and J.Front Retailing climbing 4.06% and 3.33%, respectively.
Park24 lost 4.63%, after Tokyo prosecutors raided the headquarters of the parking services firm in connection to Tokyo 2020 Olympic bribery investigations. (Reporting by Junko Fujita; Editing by Rashmi Aich)
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