Nikkei Rises 0.7% Supported by Automotive and Financial Stocks
Japanese stocks rallied in early trading, driven by a weaker yen and signs of a still-solid US economy. This increased buying interest in export-oriented stocks and sectors sensitive to interest rate fluctuations.
The weaker yen makes Japanese exporters' earnings potentially more competitive when converted back into domestic currency. The USD/JPY pair was at 156.89, up from 156.57 at the close of the Tokyo stock market on Thursday.
Automotive stocks were the main driver of the rally, as a weaker yen generally benefits vehicle manufacturers. Honda Motor was recorded as having gained around 2.6% at the start of the session.
In the financial sector, financial stocks also helped lift the index. Nomura Holdings rose around 2.0%, reflecting positive sentiment amid market attention on the direction of the global economy and its potential impact on the bond market and interest rates.
Despite the market's strengthening, investors remained vigilant about developments in diplomatic tensions between China and Japan, which could trigger volatility. Regional geopolitical issues often pose a risk factor for risky assets in Asia.
Overall, the Nikkei Stock Average rose 0.7% to 51,491.91. Market participants are also awaiting the release of US employment data, scheduled for today, as the results could influence the direction of the dollar, bond yields, and sentiment in global stock markets. (asd)
Source: Newsmaker.id
