Japanese Stocks Rise as Yen Weakens
The Nikkei 225 index rose 0.8% to surpass 39,000, while the broader Topix index gained 1% to 2,735 on Thursday, with Japanese stocks recouping some of the losses seen earlier in the week as the yen depreciated to a 3-1/2-month low. A weaker yen supported the profit outlook for Japan’s export-driven industries and boosted carry trades, where investors borrow in yen to invest in higher-yielding assets.
Attention now turns to the release of third-quarter GDP data on Friday, which could provide further insight into Japan’s economic outlook. Financial stocks led the day’s rally, with Mitsubishi UFJ up 1.6%, Sumitomo Mitsui up 1.4% and Mizuho Financial up 1.8%. In corporate news, Rakuten Group announced a strategic alliance with Mizuho Financial Group, transferring a 14.99% stake in Rakuten Card to Mizuho for about 165 billion yen.
Source: Trading Economics