Japanese Stocks Rise, Yen Weakness a Catalyst
Japanese stocks continued their rally on Wednesday (November 13th), boosted by the end of the US government shutdown, which boosted investor risk appetite. Furthermore, a weaker yen fueled expectations of an interest rate hike by the Bank of Japan (BoJ), which boosted banking stocks. The Topix index rose 0.7% to 3,381.72, while the Nikkei index rose 0.4% to 51,281.83.
The weaker yen was a key factor supporting the Japanese stock market, with the yen weakening to near 155 per US dollar. Some analysts, such as Kazuhiro Sasaki of Phillip Securities Japan, said the weaker yen could prompt the BoJ to raise interest rates sooner than expected, which would benefit the banking sector. Mitsubishi UFJ Financial Group Inc. was the largest contributor to the Topix index's rise, with its shares rising 2.1%.
Japanese banks led the gains, amid speculation that excessive yen weakness could prompt Japanese authorities to tighten monetary conditions. Many investors believe the current yen weakness highlights the downside of the Bank of Japan's ultra-loose policy and will likely accelerate higher interest rates in the future.
One stock that caught the eye was M3 Inc., which surged 23% after posting better-than-expected quarterly operating income. This was the biggest gain since M3's listing on the Tokyo Stock Exchange, signaling that investors are starting to shift their attention back to solid-performing Japanese stocks. (asd)
Source: Newsmaker.id
